Small Business Emergency Savings Accounts Act of 2023 This bill allows a new tax deduction from gross income for amounts paid into a small business emergency savings account. Such savings accounts are established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster loss replacement expenses, disaster recovery operations expenses, and public health emergency expenses.
Impact
The bill notably defines 'qualified disaster and public health emergency expenses'. These include expenses related to disaster loss replacements, disaster recovery operations, and public health emergencies. The ability for small businesses to save tax-free for emergencies could bolster their financial resilience during challenging periods. Moreover, these accounts could streamline the way businesses manage unforeseen expenses, potentially reducing the broader economic impact of disasters or health crises.
Summary
House Bill 313, titled the ‘Small Business Emergency Savings Accounts Act of 2023’, proposes amendments to the Internal Revenue Code to establish small business emergency savings accounts. These accounts allow eligible small businesses to deduct contributions made towards these accounts from their gross income. The intent of the bill is to provide financial support to small businesses during disasters or public health emergencies by facilitating savings specifically earmarked for such situations.
Contention
However, there may be concerns regarding the bill's implementation and oversight. The provisions specify that if distributions from the emergency savings accounts are not used for the defined purposes, they could be subject to a significant additional tax, thus leading to potential misunderstandings among small business owners. Environmental considerations may also arise, questioning whether these savings mechanisms sufficiently address the nuances of disaster-related expenses. Overall, while the bill seeks to strengthen small business financial security, its practical application and potential pitfalls warrant careful consideration.
Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.
To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.
To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.
Post-Disaster Assistance Online Accountability Act This bill establishes a centralized location to publish information on disaster assistance provided by federal agencies. The Small Business Administration, the Department of Housing and Urban Development, and any agencies providing disaster assistance must make available to the public on a quarterly basis information regarding (1) the total amount of assistance provided by the agency; (2) the amount provided that was expended or obligated; and (3) all projects or activities for which assistance was expended, obligated, or used.
Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.
Freedom for Families Act This bill modifies requirements for health savings accounts (HSAs) to (1) exclude from gross income HSA distributions paid or distributed during a period of qualified caregiving, (2) allow participation in an HSA without enrollment in a high deductible health plan, and (3) increase the contribution limit for HSAs.