Sponsor
Gus Bilirakis
Representative · R-FL
Representative · R-FL
The bill gives many homeowners a direct tax break on homeowners insurance (available to non‑itemizers), improving affordability for those homeowners while reducing federal revenue and skewing benefits toward higher‑income homeowners, with added tax complexity.
Homeowners who pay homeowners insurance can deduct up to $10,000 of those premiums as an above-the-line adjustment, lowering their taxable income and federal income tax liability even if they take the standard deduction.
All taxpayers/federal budget: The new deduction reduces federal revenue, which could increase the budget deficit or force spending cuts or other tax offsets.
Lower-income households and renters: The benefit mainly accrues to homeowners (who tend to have higher incomes), so the provision is relatively regressive compared with directing aid at low-income households.
Taxpayers and tax administrators: Creating a new above-the-line deduction and associated definitions increases tax filing complexity and compliance/administrative costs for taxpayers and the IRS.
Based on analysis of 2 sections of legislative text.
Creates an above-the-line deduction allowing individuals to deduct up to $10,000 in annual homeowners insurance premiums for their principal residence.
Creates a new above-the-line (adjustment to gross income) tax deduction that lets taxpayers deduct up to $10,000 in annual homeowners insurance premiums paid or incurred for their principal residence. The deduction is added to the Internal Revenue Code as a new section and applies to taxable years ending after the law takes effect. The change moves the relevant code numbering, adds the deduction as a new paragraph to the adjustments-to-gross-income list, and defines “qualified insurance premiums” as annual homeowners policy premiums for the taxpayer's principal residence (cross-referenced to the principal residence definition under current law).
Official title: To amend the Internal Revenue Code of 1986 to create an above the line deduction for certain homeowners insurance premiums.
Introduced July 30, 2026 by Gus Bilirakis · Last progress July 30, 2026