Lee, Moskowitz Introduce Bipartisan Bill Creating Tax-Free Disaster Savings Accounts

Rep. Laurel Lee

Representatives Laurel Lee (R-FL) and Jared Moskowitz (D-FL) have introduced a bipartisan bill creating tax-free savings accounts for disaster-related purposes.

More specifically, the Residential Emergency Asset Accumulation Deferred Taxation Yield (READY) Account Act would allow taxpayers to create a tax-free account similar to a Health Savings Account (HSA) to set aside funds for at least 12 different mitigation measures used by the Federal Emergency Management Agency (FEMA), such as reinforcing windows and doors, securing roofs, and raising a house or building floodwalls to prevent flooding.

Additional details suggest that any money (up to $4,500 per year) put into a READY account is tax deductible and would not be taxed upon withdrawal. 

In her press release, Rep. Lee emphasized the wildfires currently devastating California and the continued recovery from Hurricanes Helene and Milton here in Florida, saying, "The American people have seen the terrible destruction caused by severe weather events and how critical it is to prepare before disaster strikes."

As a result, she is "proud to introduce the READY Account Act to help American families invest in resilience and to mitigate the costs of disaster recovery projects," and further encouraged her constituents "to prepare before a disaster strikes, and a READY account will make it easier for families to strengthen their homes against damage from a storm or natural disaster."

Similarly, Rep. Moskowitz said, "Disaster preparedness saves lives, and it can help reduce recovery costs when disasters hit the homes of hardworking Florida families."

Calling on his previous experience as Florida's Emergency Management Director under Governor Ron DeSantis (R-FL), Rep. Moskowitz also expressed pride in introducing the READY Account Act "because we should provide Florida families as many tools as possible to better prepare their homes for disaster and quickly recover when the worst happens."

"For families in Florida and across the nation, this commonsense bill will lower sky-high insurance costs, help them stay ready, and keep their hard-earned money in their pockets," the Florida Congressman concluded.