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S 1940 119th Congress Senate Taxation

READY Accounts Act

Introduced: June 4, 2025 Introduced by: Scott, Rick Republican · Florida See on congress.gov
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jun 4, 2025
Read twice and referred to the Committee on Finance.
Jun 4, 2025
Introduced in Senate
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 Plain-English summary Congressional Research Service

READY Accounts Act

This bill establishes a new Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account, allows individuals to make tax-deductible contributions of up to $4,500 per year to such accounts (adjusted annually for inflation beginning in 2027), and allows individuals to take tax-free distributions from such accounts to pay for qualified home disaster mitigation and recovery expenses related to a principal residence owned by the taxpayer.

Under the bill, qualified home disaster mitigation expenses include expenses certified by a qualified industry professional as meeting criteria to mitigate damage from a natural or other disaster, including

  • installing a roofing underlayment to sheathing, impact-resistant windows, impact-resistant entry doors, or ground anchors;
  • replacing a roof covering;
  • applying a foam adhesive to reinforce the roof structure;
  • strengthening the connection of the roof deck to roof framing, roof-to-wall connections, soffits, or attic ventilation openings;
  • elevating a residence; or
  • achieving the current building code standard.

Qualified home disaster recovery expenses include costs for repairing damage to a residence resulting from fire, storm, or other casualty (provided such costs are not reimbursed).

Distributions from a READY account used for anything other than qualified home disaster mitigation and recovery expenses must be included in gross income and are subject to a 20% penalty. (Some exceptions apply.)

Finally, the bill imposes a 6% tax on contributions in excess of the annual limit. (Some exceptions apply.) 

What's happening now June 4, 2025

Read twice and referred to the Committee on Finance.

 Related & companion bills 1
  • HR 440 Identical bill READY Accounts Act
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 10

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

See all 10 filings →
 Cosponsors 1
All 1 Democratic 1
D
Schiff, Adam B.
California · Sep 15, 2025
Cite this page click to expand
APA
U.S. Congress. (2026). S. 1940: READY Accounts Act. 119th Congress. Open America. https://openamerica.io/bill/119-S-1940/
MLA
"S. 1940: READY Accounts Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-1940/.
Bluebook (legal)
S. 1940, 119th Cong. (2026), https://openamerica.io/bill/119-S-1940/.
Markdown link
[S. 1940: READY Accounts Act](https://openamerica.io/bill/119-S-1940/)
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