AB 232: Natural disasters: catastrophe savings accounts: personal income tax.

This bill allows a deduction from adjusted gross income for amounts contributed to a catastrophe savings account, which is a regular savings account or money market account established to pay for qualified catastrophe expenses. The account must meet certain requirements and be established by a qualified taxpayer. The deduction is available for taxable years beginning on or after January 1, 2026, and before January 1, 2031. A qualified taxpayer who uses a distribution from the account for an expense other than a qualified catastrophe expense is subject to a penalty. The bill also provides an exclusion from gross income for interest earned by the account until December 1, 2030. The bill includes findings and reporting requirements to ensure it achieves its goals and objectives. The bill takes effect immediately as a tax levy, allowing taxpayers to take advantage of the deduction and exclu…