Establishes the Catastrophe Savings Account Act to allow residents to save for qualified catastrophe expenses.

The bill establishes the Catastrophe Savings Account Act, allowing residents to set up a savings account for qualified catastrophe expenses. Contributions are limited based on the taxpayer's deductible, with a maximum of $25,000. Contributions are tax-deductible, and distributions used for qualified catastrophe expenses are tax-exempt. 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 residents to save for qualified catastrophe expenses.

The bill establishes the Catastrophe Savings Account Act, allowing residents to set up a savings account for qualified catastrophe expenses. Contributions are limited based on the taxpayer's deductible, with a maximum of $25,000. Contributions are tax-deductible, and distributions used for qualified catastrophe expenses are tax-exempt. The act takes effect on July 1, 2026, and applies to taxable years beginning on or after January 1, 2027.