S 2327
110th CONGRESS
1st Session
S. 2327
To amend the Internal Revenue Code of 1986 to provide a credit
against tax for increased homeowners insurance premiums suffered by
certain coastal homeowners or resulting from hurricane events.
IN THE SENATE OF THE UNITED STATES
November 8, 2007
Mr. REID (for Mr. DODD) introduced the following bill; which was read
twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit
against tax for increased homeowners insurance premiums suffered by
certain coastal homeowners or resulting from hurricane events.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Homeowners Insurance Assistance Act of
2007'.
SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR CERTAIN HOMEOWNERS INSURANCE
PREMIUMS.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting after section
25D the following new section:
`SEC. 25E. CERTAIN HOMEOWNERS INSURANCE PREMIUMS.
`(a) Allowance of Credit- In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 50 percent of the taxpayer's
qualified homeowners insurance premium for such taxable year.
`(1) MAXIMUM CREDIT- The credit allowed under subsection (a) for any
taxable year shall not exceed $250.
`(2) LIMITATION BASED ON ADJUSTED GROSS INCOME- The amount of the
credit allowable under subsection (a) shall be reduced (but not below
zero) by 2 percentage points for each percentage point (or fraction
thereof) by which the taxpayer's adjusted gross income exceeds the
State median income for such a taxpayer for the preceding taxable
year in the State in which the principal residence of such taxpayer
is located.
`(3) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year
to which section 26(a)(2) does not apply, the credit allowed under
subsection (a) for any taxable year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section
26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this subpart (other
than this section and sections 23, 24, and 25B) and section 27 for
the taxable year.
`(c) Eligible Individual- For purposes of this section--
`(1) IN GENERAL- The term `eligible individual' means any taxpayer
whose principal residence isX
`(A) substantially the same dwelling unit during the applicable
period, and
`(i) an area determined by the President to warrant individual
or individual and public assistance from the Federal Government
under the Robert T. Stafford Disaster Relief and Emergency Assistance
Act by reason of 1 or more hurricanes during 2004 or 2005, or
`(I) located in a State which borders the Atlantic Ocean or
the Gulf of Mexico, and
`(II) which is determined by the Secretary, in consultation
with the National Association of Insurance Commissioners, to
have experienced a higher than average increase in homeowners
insurance premiums during 2004, 2005, or 2006 due to hurricane
risk.
`(2) APPLICABLE PERIOD- The term `applicable period' means--
`(A) in the case of an area described in paragraph (1)(B)(i), the
period beginning the day before the determination described in such
paragraph and ending on the last day of the taxable year, and
`(B) in the case of an area described in paragraph (1)(B)(ii), the
period beginning on September 1, 2005, and ending before the last
day of the taxable year.
`(d) Qualified Homeowners Insurance Premium- For purposes of this section--
`(1) IN GENERAL- The term `qualified homeowners insurance premium'
for any taxable year means an amount equal to the qualifying percentage
of the eligible individual's homeowners insurance premium in effect
on the first policy anniversary date (or, if greater, the second policy
anniversary date) following the beginning of such individual's applicable
period.
`(2) QUALIFYING PERCENTAGE- The term `qualifying percentage' is equal
to the excess (expressed in percentage points) of --
`(A) the eligible individual's percentage increase in homeowners
insurance premium between the last policy anniversary before the
beginning of such individual's applicable period and the policy
anniversary date (as determined under paragraph (1)) following the
beginning of such individual's applicable period, over
`(B) the national average percentage increase in homeowners insurance
premiums between the same dates as determined by the Secretary,
in consultation with the National Association of Insurance Commissioners.
`(e) Other Definitions- For purposes of this section--
`(1) PRINCIPAL RESIDENCE- The term `principal residence' has the same
meaning as when used in section 121.
`(2) HOMEOWNERS INSURANCE- The term `homeowners insurance' means any
insurance covering a principal residence.
`(f) Termination- This section shall not apply to taxable years beginning
after December 31, 2007.'.
(b) Conforming Amendment- The table of sections for subpart A of part
IV of subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 25D the following new item:
`Sec. 25E. Certain homeowners insurance premiums.'.
(c) Effective Date- The amendments made by this section shall apply
to taxable years beginning after December 31, 2006.
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