25 LC 50 1138
House Bill 511
By: Representatives Lumsden of the 12
th
, Blackmon of the 146
th
, Williams of the 148
th
,
Burchett of the 176
th
, Hatchett of the 155
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend of Chapter 32 of Title 33 and Code Section 48-7-27 of the Official Code of
1
Georgia Annotated, relating to property insurance and computation of taxable net income,2
respectively, so as to provide for deductions from taxable income for contributions by3
taxpayers to catastrophe savings accounts and interest earned on such accounts; to establish4
limits for contributions to such accounts; to provide for definitions; to provide for related5
matters; to provide for an effective date and applicability; to repeal conflicting laws; and for6
other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Chapter 32 of Title 33 of the Official Code of Georgia Annotated, relating to property10
insurance, is amended by adding a new Code section to read as follows:11
"33-32-7.
12
(a) As used in this Code section, the term:13
(1)(A) 'Catastrophe savings account' means:14
(i) Any regular savings account or money market account established by a resident15
individual taxpayer who is an insurance policyholder for residential property in this16
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state, which property is his or her primary residence, to cover the taxpayer's qualified17
catastrophe expenses; and18
(ii) Any regular savings account or money market account established by a resident19
individual taxpayer to cover expenses for self-insured losses which are qualified20
catastrophe expenses.21
(B) An account shall be labeled as a catastrophe savings account to qualify as a22
catastrophe savings account pursuant to this Code section.23
(2) 'Qualified catastrophe expenses' means expenses, including, but not limited to,24
qualified deductibles paid or incurred in connection with damage to a taxpayer's primary25
residence resulting from an event that has been declared as a disaster or emergency by26
the Governor.27
(3) 'Qualified deductible' means the deductible for the homeowner's insurance policy of28
the taxpayer covering hurricane, rising floodwater, or other catastrophic windstorm event29
damage for his or her primary residence. If the homeowner's insurance policy of the30
taxpayer covering hurricane, rising floodwater, or other catastrophic windstorm event31
damage for his or her primary residence includes more than one deductible, the32
deductible with the highest amount shall constitute the qualified deductible.33
(4) 'Windstorm event' means a cyclone, a hurricane, a tornado, high winds, hail, or any34
similar peril not normally among those covered under typical property casualty insurance35
policies but obtainable through the purchase of wind, wind and hail, storm, or windstorm36
coverage, or any combination of such coverages.37
(b) A taxpayer may establish one catastrophe savings account and shall specify that the38
purpose of the account is to cover qualified catastrophe expenses.39
(c)(1) For a taxpayer whose qualified deductible is $1,000.00 or less, the total amount40
that may be contributed to a catastrophe savings account shall not exceed $2,000.00.41
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(2) For a taxpayer whose qualified deductible is greater than $1,000.00, the total amount42
that may be contributed to a catastrophe savings account shall not exceed the lesser of43
twice the amount of the taxpayer's qualified deductible or $25,000.00.44
(3) For a self-insured taxpayer who chooses not to obtain insurance on his or her primary45
residence, the total amount that may be contributed to a catastrophe savings account shall46
not exceed $250,000.00; provided, however, that in no case shall the amount contributed47
to the catastrophe savings account exceed the fair market value of the taxpayer's primary48
residence.49
(d) A catastrophe savings account shall not be subject to attachment, levy, garnishment,50
or legal process in this state."51
SECTION 2.52
Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of53
taxable net income, is amended by adding a new paragraph to subsection (a) to read as54
follows:55
"(11.3) For taxable years beginning on or after January 1, 2026:56
(A) The amount contributed to a catastrophe savings account in accordance with Code57
Section 33-32-7; and58
(B) Any interest earned on moneys in a catastrophe savings account;"59
SECTION 3.60
This Act shall become effective on July 1, 2025, and shall be applicable to taxable years61
beginning on or after January 1, 2026.62
SECTION 4.63
All laws and parts of laws in conflict with this Act are repealed.64
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