Duval Times

Senator Rick Scott has introduced the Residential Emergency Asset Accumulation Deferred Taxation Yield (READY) Account Act, a legislative proposal aimed at creating tax-free savings accounts for disaster mitigation and response. This initiative follows the impact of Major Hurricanes Helene and Milton.

The READY Account Act proposes a tax-advantaged savings vehicle similar to Health Savings Accounts (HSAs), allowing taxpayers to save for at least 12 different mitigation measures recognized by the Federal Emergency Management Agency (FEMA). These measures include strengthening roof connections, installing impact-resistant windows and doors, and elevating homes or constructing floodwalls to mitigate flooding risks. The bill is supported by Florida's Chief Financial Officer Jimmy Patronis.

Senator Scott emphasized the importance of preparedness during hurricane season, stating, "Floridians know that during Hurricane Season preparedness saves lives, and being ready for storms can also help save your home from catastrophic damage." He expressed his commitment to ensuring FEMA provides necessary assistance while empowering Floridians to take personal action in protecting their homes. "I urge my colleagues to support this good bill that helps families across the country establish tax-free disaster savings accounts," Scott added.

CFO Jimmy Patronis highlighted the financial benefits of upgrading homes according to current building codes. "Upgrading a home to the latest building codes saves $11 for every $1 invested," he noted, referencing the success of Florida's My Safe Florida Home Program in reducing insurance costs.

The READY Account Act seeks amendments to the Internal Revenue Code (26 U.S.C.) to allow taxpayers to establish these accounts with three key tax benefits: an annual deduction on contributions, tax-exempt growth of investments within the account, and non-taxable withdrawals for eligible mitigation measures. Contributions are capped at $4,500 annually. The account must be used for mitigation efforts benefiting the taxpayer’s primary residence and requires certification by an industry professional.

Senator Scott encourages Floridians seeking information or assistance with federal agencies like FEMA following recent hurricanes to visit his website or consult state resources through the Florida Division of Emergency Management.