READY Accounts Act

This bill creates a new, tax‑advantaged savings account to help homeowners prevent and repair disaster damage. You can contribute and deduct up to $4,500 per year from your taxes, with the limit rising with inflation after 2025. Withdrawals are tax‑free when used for approved home hardening projects or to fix damage to your main home that insurance didn’t cover .

Approved upgrades can include stronger roofs and roof connections, impact‑resistant windows and doors, elevating the home, adding ground anchors, and bringing an older home up to the current building code, when certified by a qualified professional.

• Who is affected: Homeowners who own and live in their main home.
• What changes: Tax‑deductible contributions up to $4,500 a year; tax‑free use for approved mitigation and repair; a 20% penalty if money is used for other purposes; and an extra 6% tax on contributions over the yearly cap .
• When: The $4,500 cap is indexed for inflation after 2025.