California AB232 proposes a tax deduction for contributions to catastrophe savings accounts for natural disasters.

California AB232 introduces a tax deduction for contributions to catastrophe savings accounts, which are intended to cover deductibles and uninsured losses from wildfires, floods, or earthquakes. These accounts are exempt from attachment, levy, garnishment, or legal process. The bill defines qualified catastrophe expenses and sets contribution limits based on the deductible amount. It also outlines penalties for improper use of account funds and specifies that interest earned on these accounts is not taxable until after December 1, 2030.

California AB232 proposes a tax deduction for contributions to catastrophe savings accounts for natural disasters.

California AB232 introduces a tax deduction for contributions to catastrophe savings accounts, which are intended to cover deductibles and uninsured losses from wildfires, floods, or earthquakes. These accounts are exempt from attachment, levy, garnishment, or legal process. The bill defines qualified catastrophe expenses and sets contribution limits based on the deductible amount. It also outlines penalties for improper use of account funds and specifies that interest earned on these accounts is not taxable until after December 1, 2030.