1. Short title This Act may be cited as the Flood Insurance Tax Credit Act of 2018 . 2. Credit for flood insurance expenses (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section: 25E. Flood insurance expenses (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this subtitle for a taxpayer for a taxable year an amount equal to the sum of— (1) the lesser of— (A) the Federal flood insurance expenses of the taxpayer for the taxable year, and (B) $1,500, plus (2) the lesser of— (A) 50 percent of the private flood insurance expenses of the taxpayer for the taxable year, and (B) $3,000, plus (3) the lesser of— (A) Federal contents coverage flood insurance expenses of the taxpayer for the taxable year, and (B) $600. (b) Phaseout (1) Federal flood insurance expense The amount determined under subsection (a)(1) for a taxpayer for a taxable year shall be reduced (but not below zero) by— (A) in the case of a joint return, 1.5 percent of so much of the taxpayer’s income for such taxable year as exceeds $100,000, and (B) in any other case, 3 percent of so much of the taxpayer’s income for such taxable year as exceeds $50,000. (2) Private flood insurance expense The amount determined under subsection (a)(2) for a taxpayer for a taxable year shall be reduced (but not below zero) by— (A) in the case of a joint return, 3 percent of so much of the taxpayer’s income for such taxable year as exceeds $100,000, and (B) in any other case, 6 percent of so much of the taxpayer’s income for such taxable year as exceeds $50,000. (3) Federal contents coverage flood insurance expense The amount determined under subsection (a)(3) for a taxpayer for a taxable year shall be reduced (but not below zero) by— (A) in the case of a joint return, 0.6 percent of so much of the taxpayer’s income for such taxable year as exceeds $100,000, and (B) in any other case, 1.2 percent of so much of the taxpayer’s