US Federal 2025-2026 Regular Session

US Federal House Bill HB440

Introduced
1/15/25  

Caption

READY Accounts Act

Impact

The introduction of READY accounts is expected to have a substantial impact on state laws related to taxation and disaster preparedness. By providing tax deductions for contributions to these accounts, the legislation aims to assist individuals in accumulating funds that can be used exclusively for mitigating damage from disasters or for recovery costs that arise from such events. This represents a shift towards proactively managing risks associated with natural disasters within the framework of the Internal Revenue Code. Additionally, the bill outlines specific criteria for what constitutes qualified expenses, which will influence homeowners' choices on improvements related to disaster resilience.

Summary

House Bill 440, known as the READY Accounts Act, aims to amend the Internal Revenue Code to establish Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) accounts. This bill allows individuals to deduct contributions made to these accounts, which are specifically designed to fund disaster mitigation and recovery expenses for eligible residential properties. Individuals can deduct up to $4,500 per taxable year, with adjustments for inflation in subsequent years. The intent behind this financial incentive is to encourage homeowners to prepare for and recover from natural disasters effectively.

Contention

A notable point of contention around this bill may arise from those who question the effectiveness of attaching tax benefits to individual savings behaviors, particularly concerning disaster preparedness. Critics might argue that while the tax incentives foster good intentions, they could fall short in ensuring comprehensive community-wide disaster readiness. Furthermore, the criteria for what qualifies as a disaster mitigation measure could lead to debates over its specificity, thus potentially limiting access for some homeowners. Although the bill sets a path for significant support in disaster preparedness, its implementation and impact will rely heavily on public adoption and understanding of the new financial tools provided.

Congress_id

119-HR-440

Policy_area

Taxation

Introduced_date

2025-01-15

Companion Bills

US SB1940

Same As READY Accounts Act

Previously Filed As

US SB1940

READY Accounts Act

US HB1128

Endowment Accountability Act

US HB6904

Veterans Readiness and Employment Improvement and Accountability Act

US SB2431

Relating To Health Savings Accounts.

US SB3391

Accountability for Better Care Act of 2025

US HB3019

Holding Nonprofit Hospitals Accountable Act

US HB3407

Money Accounts for Growth and Advancement Act

US HB8466

TRUE Accountability Act Taxpayer Resources Used in Emergencies Accountability Act

US HB2759

Fair Accounting for Condominium Construction Act

US AB1726

Natural disasters: catastrophe savings accounts: personal income tax.

Similar Bills

No similar bills found.