arrow_back Back to App

New READY Accounts: Tax Relief for Home Disaster Preparedness.

This act introduces new savings accounts, READY accounts, allowing tax deductions for contributions aimed at preparing homes for natural disasters or covering post-disaster repair costs. This enables citizens to save for essential housing safety expenses while reducing their income tax. Funds from the account can be used for specific measures like roof reinforcement or impact-resistant window installation, as well as for repairs not covered by insurance.
Key points
Ability to deduct up to $4,500 annually (amount will increase with inflation) for contributions to a READY account.
Funds from a READY account can be used for preventative measures (e.g., strengthening home structure) or to cover disaster recovery costs not covered by insurance.
Withdrawals from the account for qualified expenses are tax-free; withdrawals for other purposes are subject to taxation and an additional 20% penalty.
The account must be managed by a bank or other approved institution, and its assets cannot be invested in life insurance contracts.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_440
Sponsor: Rep. Lee, Laurel M. [R-FL-15]
Process start date: 2025-01-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
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 119_HR_440.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-01-15.

What are the main provisions?

Key points include:

  • Ability to deduct up to $4,500 annually (amount will increase with inflation) for contributions to a READY account.
  • Funds from a READY account can be used for preventative measures (e.g., strengthening home structure) or to cover disaster recovery costs not covered by insurance.
  • Withdrawals from the account for qualified expenses are tax-free; withdrawals for other purposes are subject to taxation and an additional 20% penalty.
  • The account must be managed by a bank or other approved institution, and its assets cannot be invested in life insurance contracts.
What is the specific legal status?

The current status is Introduced.

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 Rep. Lee, Laurel M. [R-FL-15].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Real Estate Security