Establishes the Catastrophe Savings Account Act to allow Rhode Island taxpayers to save for qualified catastrophe expenses.

The Catastrophe Savings Account Act establishes a savings account for Rhode Island taxpayers to save for qualified catastrophe expenses, such as deductibles and uninsured damages from events like windstorms and floods. Contributions are tax-deductible, and distributions used for qualified catastrophe expenses are tax-exempt. The account limit is $250,000 or the fair market value of the primary residence, whichever is less. The act takes effect on July 1, 2026, and applies to taxable years beginning on or after January 1, 2027.

Establishes the Catastrophe Savings Account Act to allow Rhode Island taxpayers to save for qualified catastrophe expenses.

The Catastrophe Savings Account Act establishes a savings account for Rhode Island taxpayers to save for qualified catastrophe expenses, such as deductibles and uninsured damages from events like windstorms and floods. Contributions are tax-deductible, and distributions used for qualified catastrophe expenses are tax-exempt. The account limit is $250,000 or the fair market value of the primary residence, whichever is less. The act takes effect on July 1, 2026, and applies to taxable years beginning on or after January 1, 2027.