Iowa bill creates a catastrophic savings account for qualified expenses and modifies individual income taxes for account holders.

The bill establishes a catastrophic savings account for Iowa residents to cover qualified catastrophic expenses, such as homeowner's property and casualty insurance deductibles for events like windstorms and floods. Account holders can contribute up to certain limits based on their insurance premiums. The bill also modifies individual income taxes by allowing deductions for contributions and exempting interest from the accounts. It includes provisions for account administration, financial institution protections, and tax reporting requirements.

Iowa bill creates a catastrophic savings account for qualified expenses and modifies individual income taxes for account holders.

The bill establishes a catastrophic savings account for Iowa residents to cover qualified catastrophic expenses, such as homeowner's property and casualty insurance deductibles for events like windstorms and floods. Account holders can contribute up to certain limits based on their insurance premiums. The bill also modifies individual income taxes by allowing deductions for contributions and exempting interest from the accounts. It includes provisions for account administration, financial institution protections, and tax reporting requirements.