Bill > A01436

This bill establishes catastrophe savings accounts (CSAs) as a tax-advantaged financial tool for New York homeowners to save money specifically for expenses related to natural disasters like hurricanes and flooding. Under this legislation, individuals can open a single savings account labeled as a CSA to cover insurance deductibles or uninsured losses from catastrophic windstorm events. Contributions to these accounts are tax-deductible, and the interest earned is tax-exempt. The bill sets specific contribution limits based on an individual's insurance deductible: up to $2,000 for deductibles under $1,000, up to $15,000 or twice the deductible for higher deductibles, and up to $250,000 for self-insured individuals. Withdrawals are tax-free if used for qualified catastrophe expenses, which are defined as expenses from disasters declared a state emergency by the governor. If funds are withdrawn for non-qualified purposes, they will be taxed with an additional 2.5% penalty, though this penalty is waived for account holders over 70 or those who no longer own a primary residence in New York. The account is also protected from attachment, levy, or garnishment, providing additional financial security for homeowners preparing for potential natural disasters.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1436