(1) In general

Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and inserting after section 223 the following new section:

224. Flood insurance premiums

(a) Deduction allowed

In the case of an individual, there shall be allowed as a deduction qualified flood insurance premiums paid or incurred during the taxable year with respect to property owned by the taxpayer.

(b) Limitation

(1) In general

Subsection (a) shall not apply with respect to any taxpayer whose adjusted gross income for the taxable year exceeds $200,000 ($400,000 in the case of a joint return).

(2) Application

For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

(A)

after application of sections 86, 135, 137, 219, 221, and 469, and

(B)

without regard to this section.

(c) Qualified flood insurance premiums

For purposes of this section, the term qualified flood insurance premiums means—

(1)

any chargeable risk premium rate for flood insurance under the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) or the payment of any premium under private flood insurance, as defined in section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)),

(2)

any Federal Policy Fee, as defined in Appendix A(1) to part 61 of title 44, Code of Federal Regulations, or any successor regulation,

(3)

any surcharge described in the flush text following subparagraph (D) of section 1304(b)(4) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)), and

(4)

any premium surcharge under section 1308A of the National Flood Insurance Act of 1968 (42 U.S.C. 4015a).

(2) Clerical amendment

The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:

(1)

Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting 224 after 221.

(2)

Section 86(b)(2)(A) of such Code is amended by inserting 224, after 221,.

(3)

Section 135(c)(4)(A) of such Code is amended by inserting 224, after 221,.

(4)

Section 137(b)(3)(A) of such Code is amended by inserting 224 after 221,.

(5)

Section 219(g)(3)(A)(ii) of such Code is amended by inserting 224, after 221,.

(6)

Section 221(b)(2)(C)(i) of such Code is amended by inserting 224, after 219,.

(7)

Section 469(i)(3)(E)(ii) of such Code is amended by inserting 224, after 221,.