READY Accounts Act
- Bill Number
- H.R. 440
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-01-15: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-02-10T09:05:23Z
Official Summary
READY Accounts Act
This bill establishes a new Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account, allows individuals to make tax-deductible contributions of up to $4,500 per year to such accounts (adjusted annually for inflation), and allows individuals to take tax-free distributions from such accounts to pay for qualified home disaster mitigation and recovery expenses related to a principal residence owned by the taxpayer.
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.)
Sponsor
Cosponsors (8)
Rep. Moskowitz, Jared [D-FL-23], Rep. Buchanan, Vern [R-FL-16], Rep. Franklin, Scott [R-FL-18], Rep. Bilirakis, Gus M. [R-FL-12], Rep. McClain Delaney, April [D-MD-6], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Patronis, Jimmy [R-FL-1], Rep. Rutherford, John H. [R-FL-5]
Recent Actions
- 2025-01-15: Referred to the House Committee on Ways and Means.
- 2025-01-15: Introduced in House
- 2025-01-15: Introduced in House
Bill Versions
- READY Accounts Act — issued 2025-01-15 — PDF (20 pages)