Creates a new federal income tax deduction that lets individual taxpayers deduct qualified flood insurance premiums they paid or incurred during the tax year. The deduction is available only for taxpayers with modified adjusted gross income at or below $200,000 (single) or $400,000 (joint), and it covers National Flood Insurance Program (NFIP) premiums, qualifying private flood insurance premiums, the Federal Policy Fee, and specified surcharges. The change amends the Internal Revenue Code and applies to taxable years beginning after the date of enactment.