READY Accounts Act

This bill creates a new type of savings account called a READY account that lets homeowners set aside up to $4,500 per year (with that limit increasing over time for inflation) to prepare for or recover from natural disasters. Money put into the account is tax-deductible, and withdrawals are tax-free as long as they are used for specific home improvements to prevent disaster damage — like installing stronger roofs, impact-resistant windows, or elevating a home — or for repairing damage from events like fires or storms that insurance doesn't cover. If someone takes money out of the account for other reasons, they have to pay taxes on it plus a 20% penalty. The bill also charges a 6% tax on any contributions that go over the yearly limit.

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