Proposed Coastal Homeowners Assistance Act Seeks Tax Credits for Coastal Residents
Thursday, August 07, 2008
Introduced by Sen. Roger Wicker, R-Miss, this bill will provide tax credits for high insurance premiums and storm mitigation improvements for coastal residents of states hard-hit by hurricanes including Florida, Mississippi, Texas, Louisiana and North Carolina.
The bill would give residents affected by hurricanes in 2004, 2005 or 2006, a one-time tax credit up to $5,000 if their insurance premium increased 50 percent over a three-year period. It would also create a permanent tax credit of up to $5,000 per year for residents who make hurricane mitigation improvements to their homes. The bill is being co-sponsored by Sens. Thad Cochran, R-Miss., Mel Martinez, R-Fla., and David Vitter, R-La.
Under the proposed plan, individuals would be eligible to receive a one-time tax credit up to $5,000 for an amount equal to 50 percent of the increase of their insurance premiums over three years. For example, if a resident paid $1,000 a year for homeowners’ insurance in 2005 and $5,000 in 2008, that person could claim a tax credit of 50 percent of the $4,000 increase.
Coastal resident along the Gulf of Mexico and Atlantic Ocean would also be eligible for a proposed permanent tax credit up to $5,000. Homeowners could claim 25 percent of the cost of hurricane mitigation improvements, such as elevating a structure or reinforcing it.
The bill, Coastal Homeowners Assistance Act, will be referred to the Senate Finance Committee in the near future.The bill would give residents affected by hurricanes in 2004, 2005 or 2006, a one-time tax credit up to $5,000 if their insurance premium increased 50 percent over a three-year period. It would also create a permanent tax credit of up to $5,000 per year for residents who make hurricane mitigation improvements to their homes. The bill is being co-sponsored by Sens. Thad Cochran, R-Miss., Mel Martinez, R-Fla., and David Vitter, R-La.
Under the proposed plan, individuals would be eligible to receive a one-time tax credit up to $5,000 for an amount equal to 50 percent of the increase of their insurance premiums over three years. For example, if a resident paid $1,000 a year for homeowners’ insurance in 2005 and $5,000 in 2008, that person could claim a tax credit of 50 percent of the $4,000 increase.
Coastal resident along the Gulf of Mexico and Atlantic Ocean would also be eligible for a proposed permanent tax credit up to $5,000. Homeowners could claim 25 percent of the cost of hurricane mitigation improvements, such as elevating a structure or reinforcing it.
