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AL HB515

Bill

Status

Introduced

4/21/2015

Primary Sponsor

Randy Davis

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Origin

House of Representatives

Regular Session 2015

AI Summary

HB515 Summary

  • Establishes the Homeowner's Insurance Catastrophic Event Planning Act and increases the state tax deduction for contributions to catastrophe savings accounts from one times the amount contributed to two times the amount contributed.

  • For individuals with qualified deductibles of $1,000 or less, allows contributions up to $4,000 per tax year and $12,000 total; for those with deductibles greater than $1,000, allows the lesser of $15,000 or twice the qualified deductible amount.

  • Permits self-insured individuals who do not obtain homeowners insurance to contribute up to $250,000, not to exceed the value of their legal residence.

  • Exempts all interest income earned in catastrophe savings accounts from Alabama state income tax and protects accounts from attachment, levy, garnishment, or legal process.

  • Effective for tax years beginning January 1, 2015.

Legislative Description

Taxation, tax deduction for taxpayers who made contributions to a catastrophe savings account, increase in state tax deduction, technical corrections to remove ambiguities, Homeowner's Insurance Catastrophic Event Planning Act, Secs. 40-18-311, 40-18-312 am'd.

Taxation

Last Action

Read for the first time and referred to the House of Representatives committee on Ways and Means Education

4/21/2015

Committee Referrals

Ways and Means Education4/21/2015

Full Bill Text

No bill text available