This bill establishes a new tax credit for flood insurance expenses under the Internal Revenue Code, effective for taxable years beginning after December 31, 2025. It allows taxpayers to claim a credit for premiums paid for federal flood insurance, private flood insurance, and federal contents coverage flood insurance. The credit is specifically for coverage related to a taxpayer's principal residence . The credit has maximum limits: up to $1,500 for federal flood insurance, $3,000 for private flood insurance (50% of expenses), and $600 for federal contents coverage. These credit amounts are subject to an income-based phaseout, beginning at $100,000 for joint filers and $50,000 for other taxpayers, with varying reduction rates per category. The bill prevents taxpayers from claiming a double benefit by disallowing the credit for amounts already deducted elsewhere. Additionally, the dollar amounts for the credit and phaseout thresholds will be adjusted annually for inflation starting in 2026.