SB 26-49

Senate Bill 26-49, now signed into law, helps homeowners and homeowner associations by allowing them to receive financial assistance from a disaster relief fund for installing stronger roofing materials and other protective measures against natural disasters. It also introduces an income tax deduction for savings accounts that cover insurance deductibles and uninsured losses related to hail, wildfires, or wind damage, plus the costs of these protective measures. This means homeowners can save money on taxes while setting aside funds to protect their homes from costly damages.

Official Summary

The bill adds individuals and homeowners' associations as eligible recipients of assistance from the natural disaster mitigation enterprise fund. The bill also provides that natural disaster mitigation includes installation of "impact-resistant roofing materials" and other "property-specific mitigation action" and provides definitions of the same.Additionally, the bill creates an income tax deduction for contributions to a catastrophe savings account (CSA), which is a savings account that a homeowner may use to cover the amount of insurance deductibles for claims stemming from hail, wildfire, or a catastrophic wind event, uninsured losses related to the same, and property-specific mitigation actions. The bill also exempts interest earned by CSAs from income tax.(Note: This summary applies to this bill as introduced.)

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