SB 35, the Homeowners Premium Tax Reduction Act of 2025, would amend the Internal Revenue Code to create a new above-the-line federal income tax deduction for homeowners insurance premiums paid by individuals. The deduction would apply to annual homeowners insurance premiums for a taxpayer’s principal residence, with the deductible amount capped at $10,000 per year. Because it is structured as an above-the-line deduction, eligible taxpayers could claim it without itemizing deductions.
The bill also specifies that the deduction would be treated as an adjustment to gross income under section 62 of the tax code, and it would apply to taxable years ending after the date of enactment. In practical terms, the measure would reduce taxable income for qualifying homeowners and could lower federal tax liability for households paying significant insurance costs on their primary homes.
Impact
If enacted, SB 35 would add a new section 224 to the Internal Revenue Code and conform related provisions so the homeowners insurance deduction is available in calculating adjusted gross income. It would directly affect individual taxpayers who pay homeowners insurance on their principal residence, especially those in higher-cost insurance markets, while leaving business, rental, and non-primary-residence policies outside the deduction. The bill would also require clerical updates to the Code’s table of sections and would take effect prospectively for taxable years ending after enactment.
Sentiment
The available context suggests generally favorable treatment of the bill at introduction, with no recorded opposition, amendments, or committee debate in the provided materials. The measure was introduced by Senator Scott of Florida and referred to the Senate Committee on Finance, indicating it is at an early stage of consideration. Because there are no transcripts or votes included, there is no evidence in the record provided of formal support or criticism beyond the bill’s filing.
Contention
The main policy issue inherent in the bill is whether federal tax relief should be used to offset rising homeowners insurance costs, and whether the benefit should be limited to a taxpayer’s principal residence and capped at $10,000. Potential points of contention would likely include the revenue cost of the deduction, whether it disproportionately benefits higher-income homeowners who can claim larger insurance expenses, and whether it should be targeted to specific regions facing insurance market stress. No specific objections or supporters are identified in the provided discussion materials.
This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.
This bill provides a tax deduction for health insurance premiums paid to provide medical insurance coverage for an individual, the individual’s spouse, and the individual’s dependents. Under the bill, the tax deduction may be claimed as an adjustment to income (also known as an above-the-line tax deduction), which does not require the individual to itemize deductions.