To amend the Internal Revenue Code of 1986 to exclude from gross income certain income from providing real property insurance following certain federally declared disasters.
Sponsors
Legislative Progress
IntroducedMr. Higgins of Louisiana introduced the following bill; which was …
Summary
What This Bill Does
This bill creates a tax break for insurance companies that provide property insurance in areas hit by federally declared disasters. It excludes from taxable income the profits these insurers make from real property insurance policies in disaster zones for five years after the disaster occurs.
Who Benefits and How
Property and casualty insurance companies benefit significantly. They would pay no federal income tax on their net profits from insuring homes and buildings in disaster areas for five years. This could save them millions in taxes when providing coverage after hurricanes, wildfires, floods, and other major disasters.
Property owners in disaster-prone areas may benefit indirectly. The tax incentive aims to encourage insurance companies to continue offering coverage in high-risk areas rather than withdrawing from markets after disasters, which could help maintain insurance availability and potentially moderate premium increases.
Who Bears the Burden and How
Federal taxpayers bear the cost through reduced federal tax revenue. Every dollar of insurance company income excluded from taxation is a dollar less in government revenue, though the exact cost would depend on the frequency and severity of future disasters.
No direct regulatory burdens are imposed by this bill on any industry or group.
Key Provisions
- Creates new Section 836 of the Internal Revenue Code specifically for disaster-area insurance income
- Applies to property and casualty insurance companies (excludes life insurance companies)
- Covers both real property (homes, buildings) and personal property when insured under the same policy
- The tax exclusion lasts for 5 taxable years following the disaster incident date
- Only applies to disasters declared after December 31, 2024
- Uses the existing IRS definition of "disaster area" from Section 7508A(d)(3)
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
This bill amends the Internal Revenue Code of 1986 to exclude certain income from providing real property insurance following federally declared disasters, aiming to support recovery efforts and encourage insurance availability.
Policy Domains
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
An insurance company (excluding life insurance) that provided real property insurance for properties in a disaster area immediately before the incident date.
The excess of premiums received for real property insurance in a disaster area over deductions properly allocable to those premiums.
The bill may be cited as the Restoring Competitive Property Insurance Availability Act.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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