New York S 7264: Establishes catastrophe savings accounts

Bill Text

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S07264 Summary:

BILL NOS07264 

&nbsp

SAME ASSAME AS A01436

&nbsp

SPONSORBAILEY

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add Art 22 Part VII §§710 & 711, Tax L

&nbsp

Establishes catastrophe savings accounts as a tax-free account to allow homeowners to save money to cover qualified catastrophe expenses.

Go to top S07264 Actions:

BILL NOS07264 

&nbsp

04/07/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS07264 Committee&nbspVotes:

Go to topS07264 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS07264 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7264

 2025-2026 Regular Sessions

 IN SENATE

 April 7, 2025
 ___________

 Introduced by Sen. BAILEY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Budget and Revenue

 AN ACT to amend the tax law, in relation to establishing catastrophe
 savings accounts

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Article 22 of the tax law is amended by adding a new part
 2 VII to read as follows:
 3 PART VII--CATASTROPHE SAVINGS ACCOUNTS
 4 Section 710. Definitions.
 5 711. Catastrophe savings accounts.
 6 § 710. Definitions. As used in this part, the following terms shall
 7 have the following definitions:
 8 (a) "Catastrophe savings account" means a regular savings account or
 9 money market account established by an insurance policyholder for resi-
 10 dential real property in this state to cover an insurance deductible
 11 under an insurance policy for the taxpayer's primary residence that
 12 covers hurricane, rising floodwaters, or other catastrophic windstorm
 13 event damage or by an individual to cover self-insured losses for the
 14 taxpayer's primary residence from a hurricane, rising floodwaters, or
 15 other catastrophic windstorm event.
 16 (b) "Qualified catastrophe expenses" mean expenses paid or incurred by
 17 reason of a major disaster that has been declared by the governor to be
 18 a state disaster emergency pursuant to the provisions of section twen-
 19 ty-eight of the executive law.
 20 (c) "Qualified deductible" means the deductible for the individual's
 21 homeowner's policy for a taxpayer's primary residence.
 22 § 711. Catastrophe savings accounts. (a)(1) An individual taxpayer
 23 shall be allowed a deduction from the tax imposed pursuant to this arti-
 24 cle for amounts contributed to a catastrophe savings account pursuant to
 25 paragraph three of subsection (b) of this section; and

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01892-01-5

 S. 7264 2

 1 (2) All interest income earned by such catastrophe savings account
 2 shall be exempt from the tax imposed pursuant to this article.
 3 (b)(1) An account must be labeled as a catastrophe savings account in
 4 order to qualify as a catastrophe savings account as defined in this
 5 article. A taxpayer shall establish only one catastrophe savings account
 6 and shall specify that the purpose of the account is to cover the amount
 7 of insurance deductibles and other uninsured portions of risks of loss
 8 from hurricane, rising floodwater, or other catastrophic windstorm
 9 event.
 10 (2) A catastrophe savings account shall not be subject to attachment,
 11 levy, garnishment, or legal process in the state.
 12 (3) The total amount that may be contributed to a catastrophe savings
 13 account shall not exceed:
 14 (A) in the case of an individual whose qualified deductible is not
 15 more than one thousand dollars, two thousand dollars;
 16 (B) in the case of an individual whose qualified deductible is more
 17 than one thousand dollars, the amount equal to the lesser of fifteen
 18 thousand dollars or twice the amount of the taxpayer's qualified deduct-
 19 ible; or
 20 (C) in the case of a self-insured individual who chooses not to obtain
 21 insurance on their primary residence two hundred fifty thousand dollars,
 22 but in no event shall exceed the value of the individual taxpayer's
 23 primary residence.
 24 (4) If a taxpayer contributes in excess of the limits provided in
 25 paragraph three of this subsection, such taxpayer s