AL HB615

Catastrophe savings accounts must be held in banks or credit unions with a physical brick and mortar location in Alabama, or in veteran-related financial institutions

Accounts allow residential property owners to save for insurance deductibles, self-insured losses, FORTIFIED endorsement costs, and mitigation measures related to hurricanes, floods, and windstorm events

Each taxpayer may establish only one catastrophe savings account, and the account must be specifically labeled as such to qualify

Eligible uses include reroofing costs and evaluation services to obtain FORTIFIED designation for storm-resistant construction

Effective October 1, 2026, applying to tax years beginning January 1, 2027 or later