HB453 Summary

• Establishes the Homeowner's Insurance Catastrophic Event Planning Act to amend sections 40-18-311 and 40-18-312 of the Alabama Code regarding catastrophe savings accounts.

• Changes the tax deduction from contributions to catastrophe savings accounts from an equal amount to two times the amount contributed, increasing the tax benefit for taxpayers.

• Sets contribution limits based on qualified deductible amounts: individuals with deductibles ≤$1,000 may contribute up to $4,000 per year ($12,000 total); those with deductibles >$1,000 may contribute up to $15,000 or twice their deductible (whichever is less); self-insured individuals may contribute up to $250,000 but not exceeding their home's value.

• Makes catastrophe savings accounts exempt from attachment, levy, garnishment, and legal process in Alabama, and all interest income earned is exempt from state income tax.

• Applies effective retroactively to tax years beginning January 1, 2014, upon passage and approval by the Governor.