Flood Insurance Tax Credit Act of 2025

This bill creates a new federal tax credit for homeowners who pay for flood insurance on their primary residence. It allows a credit equal to up to $1,500 for federal flood insurance, up to $3,000 (50% of private insurance costs), and up to $600 for contents coverage, with income-based phaseouts reducing the credit for higher earners. The credit applies only to insurance for a taxpayer's main home and takes effect for tax years beginning after December 31, 2025. It directly affects homeowners in flood-prone areas who purchase qualifying flood insurance policies.