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New READY Accounts: Tax Relief for Home Disaster Preparedness.

This act introduces new READY savings accounts, allowing tax deductions for contributions aimed at preparing homes for natural disasters or covering recovery costs. Citizens can save for unforeseen disaster-related expenses while reducing their income tax. Funds can be used for specific mitigation measures like roof reinforcement or impact-resistant windows, as well as for uninsured repair costs after damage.
Key points
Ability to deduct up to $4,500 annually (adjusted for inflation) contributed to a READY account from taxable income.
Funds from a READY account can be used for qualified disaster mitigation measures (e.g., strengthening home structures) and for recovery costs from fire, storm, or other casualties not covered by insurance.
Distributions from the account for qualified expenses are tax-free; distributions for non-qualified purposes are taxable and subject to an additional 20% penalty.
A READY account must be managed by a bank or approved entity, 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_S_1940
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2025-06-04
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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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_S_1940.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-06-04.

What are the main provisions?

Key points include:

  • Ability to deduct up to $4,500 annually (adjusted for inflation) contributed to a READY account from taxable income.
  • Funds from a READY account can be used for qualified disaster mitigation measures (e.g., strengthening home structures) and for recovery costs from fire, storm, or other casualties not covered by insurance.
  • Distributions from the account for qualified expenses are tax-free; distributions for non-qualified purposes are taxable and subject to an additional 20% penalty.
  • A READY account must be managed by a bank or approved entity, 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 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 2025-12-23.

CATEGORIES

Taxes Real Estate Security