Primary affected parties:

• Eligible property insurance companies: The direct beneficiaries are insurers that meet the statute’s definition of a "specified insurance company." They can exclude qualifying real‑property insurance income from federal taxable income during the five‑year recovery window after a declared disaster. That reduces their federal tax liability for the years covered and improves after‑tax cash flow and balance‑sheet flexibility when paying claims and rebuilding operations.

Secondary and indirect effects:

• Policyholders and disaster‑affected property owners: Indirect benefits may follow if insurers use improved post‑disaster cash flow to speed claim payments, maintain or expand coverage in high‑risk areas, or dampen premium increases. The bill does not require insurers to pass tax savings to customers, so effects on premiums are possible but not guaranteed.

• Federal budget and taxpayers: Excluding insurer income from taxable income will reduce federal tax receipts relative to current law for the affected tax years. Revenue loss depends on the number and size of qualifying disasters and insurers claiming the exclusion.

• State regulators and market oversight: State insurance regulators and the IRS may need to coordinate on implementation and enforcement. Insurers must track income by property location and by disaster area, adding administrative work for accounting and tax reporting systems.

• Reinsurance / capital markets: Changes to after‑tax returns for property insurers may influence reinsurance purchases, capital raising, and the behavior of investors in the insurance sector.

Administrative complexity and implementation timeline:

• The IRS will need to issue guidance defining qualification tests, recordkeeping, and reporting rules. Insurers will need to adapt accounting, tax reporting, and compliance processes to identify and document qualifying income for properties located within declared disaster areas.

Equity and market effects:

• The provision targets property insurance revenue tied to geographically limited disasters, so benefits concentrate among insurers writing business in disaster areas and may favor larger or better‑capitalized carriers able to claim the exclusion. The measure does not directly provide aid to property owners but aims to shore up insurer solvency and liquidity after a disaster.