READY Accounts Act

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.)