Tampa Republic

Amidst the ongoing challenges posed by natural disasters, Congresswoman Laurel Lee (R-FL) and Congressman Jared Moskowitz (D-FL) have introduced a bipartisan bill aimed at providing financial relief to homeowners. The Residential Emergency Asset Accumulation Deferred Taxation Yield (READY) Account Act seeks to establish tax-free savings accounts for Americans to manage home mitigation and disaster response expenses.

The proposed legislation would allow taxpayers to create READY accounts, akin to Health Savings Accounts, enabling them to save for various mitigation measures recognized by the Federal Emergency Management Agency (FEMA). These measures include reinforcing roof connections, installing impact-resistant windows and doors, and elevating structures or building floodwalls against flooding.

Congresswoman Lee expressed her commitment: “In the midst of devastating California wildfires and after catastrophic hurricanes in Florida, the American people have seen the terrible destruction caused by severe weather events and how critical it is to prepare before disaster strikes. I am proud to introduce the READY Account Act to help American families invest in resilience and mitigate the costs of disaster recovery projects.”

Congressman Moskowitz highlighted the importance of preparedness: “Disaster preparedness saves lives, and it can help reduce recovery costs when disasters hit the homes of hardworking Florida families. As Florida’s former Emergency Management Director, I’m proud to lead the READY Account Act in the US House.”

The act has garnered support from several officials including Congressman Vern Buchanan who stated that it "empowers Floridians" by encouraging proactive steps for future disasters. Congressman Scott Franklin also emphasized its significance for hurricane-prone areas like Florida.

Senator Rick Scott noted that this initiative offers a "triple tax advantage" for homeowners saving for disaster-related improvements. Meanwhile, Jimmy Patronis, Florida's Chief Financial Officer, acknowledged its potential in reducing insurance costs while enhancing fiscal preparedness.

The National Association of Mutual Insurance Companies commended Congresswoman Lee's leadership: “Strengthening homes can reduce the risk Americans face from extreme weather,” they said.

Similarly supportive was The Florida Insurance Council which praised Rep. Lee’s efforts as a step towards fortifying financial resilience among citizens.

The National Association of Insurance and Financial Advisors echoed these sentiments by highlighting how such accounts could alleviate federal disaster relief burdens while stabilizing property insurance markets.

Key provisions of the READY Account Act include amendments allowing taxpayers annual contributions up to $4,500 with associated tax benefits on contributions made towards eligible mitigation measures. Withdrawals used for these purposes would be tax-exempt provided they are certified by industry professionals.

For more details on this legislative proposal or its full text please refer directly through official channels.

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