FLOAT Act of 2024

The FLOAT Act of 2024 creates a tax deduction for homeowners who pay flood insurance premiums on their primary residence. It allows individuals to deduct up to $1,000 annually for qualified flood insurance, including both private policies and government program coverage (like the National Flood Insurance Program). The deduction phases out for higher earners, with a $400,000 income threshold for joint filers and $200,000 for other individuals. This change applies to taxable years beginning after the bill’s enactment and directly affects homeowners in flood-prone areas who purchase flood insurance.