Bill
HSB 149
Overview: HSB 149, A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions. The b
Overview: HSB 149, A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions. The bill has been approved by committee and renumbered as HF 622.
Purpose and Intent: The primary purpose of this bill is to establish a new type of tax-advantaged savings account, called a "catastrophic savings account," to help individuals and families prepare for and mitigate the financial impact of natural disasters and other catastrophic events.
Key Provisions:
- Creates a new type of savings account, the "catastrophic savings account," which allows individuals to contribute pre-tax dollars to be used for qualified disaster-related expenses.
- Provides a tax deduction for contributions made to the catastrophic savings account, up to a certain annual limit.
- Allows for tax-free withdrawals from the account to cover eligible disaster-related expenses, such as property damage, temporary housing, and medical costs.
- Includes provisions for the portability and transferability of the catastrophic savings account.
Affected Parties and Impacts:
- Individuals and families who wish to save for potential disaster-related expenses would be able to benefit from the tax advantages of the catastrophic savings account.
- The bill may encourage more comprehensive financial planning and preparedness for natural disasters and other catastrophic events.
Procedural and Timeline Considerations:
The bill has been approved by committee and renumbered as HF 622. It will now proceed to the full House for consideration and a vote.
Compiled from official sources — confirm details with the bill’s official record.
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