arrow_back Back to App

New READY Accounts: Tax Deductions for Home Disaster Preparedness and Recovery Savings.

This law establishes new tax-advantaged savings accounts (READY) designed to help homeowners save money for disaster mitigation and uninsured recovery costs. Contributions to these accounts are tax-deductible, reducing your taxable income, and withdrawals used for qualified purposes are tax-free. This encourages citizens to proactively enhance the safety and resilience of their principal residences.
Key points
You can deduct up to $4,500 annually (indexed for inflation) contributed to a READY account from your gross income.
Funds can be withdrawn tax-free to pay for home strengthening measures (like impact-resistant windows or roof reinforcement) or for disaster repair costs not covered by insurance.
Withdrawing funds for non-qualified purposes results in the amount being taxed as income, plus an additional 20% penalty tax.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_5296
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2024-11-12
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

READY Accounts Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5296.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-11-12.

What are the main provisions?

Key points include:

  • You can deduct up to $4,500 annually (indexed for inflation) contributed to a READY account from your gross income.
  • Funds can be withdrawn tax-free to pay for home strengthening measures (like impact-resistant windows or roof reinforcement) or for disaster repair costs not covered by insurance.
  • Withdrawing funds for non-qualified purposes results in the amount being taxed as income, plus an additional 20% penalty tax.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Scott, Rick [R-FL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Real Estate Security