Bill > HB511

This bill creates a new tax-advantaged financial mechanism called a catastrophe savings account (CSA) for Georgia taxpayers to help cover expenses from natural disasters. Residents can establish one CSA per primary residence, with contribution limits based on their homeowner's insurance deductible: accounts with deductibles of $1,000 or less can receive up to $2,000 in contributions, while those with higher deductibles can contribute up to twice their deductible or $25,000, whichever is less. Self-insured homeowners can contribute up to $250,000, not exceeding their home's fair market value. The accounts offer tax benefits, including a deduction for contributions and tax-exempt interest earnings. Withdrawals are tax-free if used for qualified catastrophe expenses like insurance deductibles or repair costs from events declared emergencies by the Governor, such as hurricanes, floods, or tornadoes. If a CSA holder dies, the account's tax treatment depends on who inherits it, with special provisions for surviving spouses. The bill will take effect on July 1, 2025, and apply to tax years beginning January 1, 2026, providing Georgia residents with a new financial tool to manage potential disaster-related expenses.

Budget and Finance

https://www.legis.ga.gov/legislation/70484