READY Accounts Act

What this bill does

Official summary

Common questions

What does H.R. 440 do?

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.)

Has H.R. 440 become law?

Not yet. As of 15 Jan 2025, H.R. 440 is introduced.

Who sponsored H.R. 440?

H.R. 440 was sponsored by Rep. Laurel Lee [R-FL15] (Republican-FL), with 10 cosponsors.

What's the latest action on H.R. 440?

Introduced (15 Jan 2025).

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