Rick Scott floats HSA-style plan for homeowners’ storm hardening, with Jimmy Patronis in support

Sen. Rick Scott’s Residential Emergency Asset Accumulation Deferred Taxation Yield (READY) Account Act proposes to give homeowners a flexibility similar to health savings accounts when it comes to making structural improvements.

Per the Senator’s office, the mechanism would apply to “at least 12 different mitigation measures used by the Federal Emergency Management Agency (FEMA), such as various measures to strengthen the connection of the roof to the home; installing impact-resistant windows and doors; and, elevating the home or constructing floodwalls to mitigate against flooding.”

If this becomes law, the “tax-advantaged account would help millions of Floridians better afford disaster mitigation and protect their homes.”

The legislation would permit an annual tax deduction for whatever is paid in, with growth being exempted from taxation and no taxation for withdrawal from the account if used for its intended purpose. Annual contributions would be capped at $4,500.

Scott says his bill would “give homeowners a triple tax advantage when saving for disaster mitigation and recovery projects, and build on work done at the state level in Florida through the My Safe Florida Home program.”

“We know that there is a significant return on investment for families that take action to strengthen their homes and protect against hurricane damage, including a reduction in insurance costs, and the READY Account Act will make it easier to save for mitigation and recovery projects through a tax-free account. I urge my colleagues to support this good bill that helps families across the country establish tax-free disaster savings accounts and be better prepared for hurricanes and other natural disasters,” the Senator adds.

“I want to thank Senator Scott for building on our policy proposal to accomplish tax savings for homeowners that only the federal government can. READY accounts leverage the federal tax code to give homeowners a triple tax advantage when saving up funds to harden their homes against storms. Upgrading a home to the latest building codes saves $11 for every $1 invested and we’ve had great success with the My Safe Florida Home Program in reducing insurance costs. Florida is once again leading the way so that all Americans can benefit from lower insurance bills and fewer headaches the next time mother nature throws you a curveball,” adds CFO Jimmy Patronis in endorsement.