Homeowners Premium Tax Reduction Act of 2024
Key claim: The bill would let people subtract up to $10,000 a year of homeowners-insurance premiums on their main home from taxable income, even if they do not itemize deductions.
Abstract
(HR9411 · 118th Congress) Homeowners Premium Tax Reduction Act of 2024 This bill allows a deduction from gross income (above-the-line tax deduction) for up to $10,000 of annual policy premiums paid or incurred for homeowners insurance for an individual’s principal residence. Latest action (2024-08-27): Referred to the House Committee on Ways and Means.
Why this matters
Homeowners insurance premiums have risen sharply in many states, and current federal tax law generally does not allow deducting them for a personal residence. An above-the-line deduction available without itemizing would reduce federal taxable income for a broad set of homeowners (including the ~90% who take the standard deduction), shifting who pays less tax toward middle-income homeowners in high-premium markets. Tracking whether such proposals advance beyond introduction is a leading indicator of federal appetite to offset rising insurance costs through the tax code.