READY Accounts Act

This bill establishes a new Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account, allows individuals to make tax-deductible contributions of up to $4,500 per year to such accounts (adjusted annually for inflation), and allows individuals to take tax-free distributions from such accounts to pay for qualified home disaster mitigation and recovery expenses related to a principal residence owned by the taxpayer.

Under the bill, qualified home disaster mitigation expenses include expenses certified by a qualified industry professional as meeting criteria to mitigate damage from a natural or other disaster, including

installing a roofing underlayment to sheathing, impact-resistant windows, impact-resistant entry doors, or ground anchors;
replacing a roof covering;
applying a foam adhesive to reinforce the roof structure;
strengthening the connection of the roof deck to roof framing, roof-to-wall connections, soffits, or attic ventilation openings;
elevating a residence; or
achieving the current building code standard.

Qualified home disaster recovery expenses include costs for repairing damage to a residence resulting from fire, storm, or other casualty (provided such costs are not reimbursed).

Distributions from a READY account used for anything other than qualified home disaster mitigation and recovery expenses must be included in gross income and are subject to a 20% penalty. (Some exceptions apply.)

Finally, the bill imposes a 6% tax on contributions in excess of the annual limit. (Some exceptions apply.)

Us Congress 2025-2026 Regular Session

Us Congress House Bill HB440 Authors & Sponsors

Co-Sponsor

Vern Buchanan

Gus Bilirakis

Scott Franklin

Jared Moskowitz

Primary Sponsor

Laurel Lee

Cosponsor

Gus Bilirakis