As the 2025 hurricane season has begun, Senator Rick Scott (R-FL) reintroduced the Residential Emergency Asset Accumulation Deferred Taxation Yield (READY) Account Act on Thursday, an initiative designed to empower Americans with tax-free savings for natural disaster preparedness and recovery. Congresswoman Laurel Lee (R-FL) is spearheading the companion legislation in the House of Representatives.
The READY Account Act proposes the creation of specialized tax-free savings accounts, similar to Health Savings Accounts (HSAs), which would allow taxpayers to set aside funds specifically for home mitigation and disaster recovery expenses.
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These accounts would offer a “triple tax benefit,” meaning contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified expenses are also tax-free.
Qualified expenses under the act would include a range of proactive mitigation measures, such as securing roof structures, installing storm-resistant windows and doors, elevating homes, and achieving current building code standards. The accounts could also be utilized for uncompensated disaster recovery costs resulting from fire, storm, or other casualties.
Senator Scott emphasized the critical need for such legislation, particularly in states like Florida, which are frequently impacted by severe weather.
“In Florida, we understand that being ready and prepared for hurricane season is critical, not just to protect lives, but also to minimize damage to homes,” said Senator Scott. “The READY Act will take an important step to equip families with all the tools they need to prepare and safeguard their homes in advance, so they can focus on themselves and their families when weather approaches.” He added that such proactive investments could also lead to lower insurance costs for homeowners.
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The reintroduction of the bill follows Senator Scott’s recent Hurricane Preparedness Tour across Florida, where he visited Naples, Miami, Clearwater, Sanford, and Pensacola to advocate for necessary precautions and ensure residents have the resources to prepare for, respond to, and recover from natural disasters.
Congresswoman Laurel Lee highlighted the national scope of the problem, citing devastating wildfires in California and catastrophic hurricanes in Florida.
“I am proud to introduce the READY Account Act to help American families invest in resilience and to mitigate the costs of disaster recovery projects,” said Congresswoman Lee. “This bill will make it easier for families to strengthen their homes against damage from a storm or natural disaster.”
Under the proposed legislation, individuals could deduct up to $4,500 annually for contributions to a READY Account, with this limit subject to inflation adjustments after 2026.
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The bill outlines specific criteria for qualified home disaster mitigation measures, requiring them to meet standards set by the Secretary of the Treasury in consultation with the Federal Emergency Management Agency (FEMA) and be certified by a qualified industry professional.
The READY Account Act aims to incentivize greater personal responsibility and preparedness, providing a much-needed financial tool for homeowners in an era of increasing natural disaster frequency and intensity. The legislation has been referred to the Committee on Finance in the Senate.
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