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HR 440119th CongressIntroduced
READY Accounts Act
Introduced: Nov 4, 2025
Economy & TaxesEnvironment & ClimateHousing & Urban Development
Standard Summary
Comprehensive overview in 1-2 paragraphs
The READY Accounts Act establishes tax-advantaged savings accounts for homeowners to fund disaster mitigation and recovery expenses for principal residences, permitting annual tax-deductible contributions up to $4,500 with tax-free withdrawals for qualified home improvements like impact-resistant windows or structural reinforcements after natural disasters.
Key Points
- 1Creates READY accounts allowing tax-deductible contributions capped at $4,500 annually for home disaster mitigation measures and recovery costs.
- 2Distributions for qualified expenses such as roof reinforcements or impact-resistant doors are tax-free, while non-qualified withdrawals face taxation plus a 20% penalty.
- 3Account funds are restricted to the taxpayer's principal residence and require FEMA-consulted standards for eligible mitigation measures certified by industry professionals.
Impact Areas
Homeowners in disaster-prone regionsFederal tax revenue through new deductionsResidential construction and home improvement industriesDisaster resilience of housing infrastructure
Generated by legislative-analyst-v1 on Nov 5, 2025