Budget & Taxes

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.

HR 1878 creates a new federal tax credit for out-of-pocket expenses related to fertility treatments like IVF. It allows eligible taxpayers to claim a credit equal to up to $20,000 per year (or $40,000 for joint filers) for qualifying expenses, subject to income limits ($200,000 AGI for individuals, $400,000 for couples). The credit phases out for taxpayers earning above these thresholds and cannot be claimed for expenses covered by insurance or other deductions. This directly affects individuals and couples seeking fertility treatments who pay for them out-of-pocket.

This bill (S 3554) would amend tax law to strip tax-exempt status from organizations providing material support to terrorist groups. It defines "terrorist supporting organizations" as those that gave more than minimal material support (like funds or resources) to designated terrorist groups within the past three years. The Treasury Secretary must notify such organizations, giving them 90 days to prove they didn’t provide support, return funds, or challenge the designation in court before tax-exempt status is revoked. Organizations can later seek reinstatement if the Secretary later determines the designation was incorrect. The law establishes specific procedures for notice, dispute resolution through the IRS Appeals Office, and court review for challenges.

This bill would exclude certain union-provided payments to workers during strikes from taxable income. Specifically, it adds a new tax code section (139M) to exempt "qualified strike benefits" - payments from tax-exempt labor organizations (like unions) that replace lost wages during strikes, lockouts, or work stoppages arising from labor disputes - from gross income calculations. The change applies to compensation received after December 31, 2025, and also updates the Earned Income Tax Credit rules to include these excluded benefits. It directly affects union members who lose wages due to labor disputes and rely on union financial support during work stoppages.