CA AB1726

Creates tax-deductible "catastrophe savings accounts" for California homeowners to cover expenses from wildfires, floods, or earthquakes declared emergencies by the Governor

Allows annual contributions up to $15,000 for insured homeowners or $250,000 for uninsured homeowners, with contributions deductible from adjusted gross income

Excludes interest earned on these accounts from state gross income during the program period

Applies to taxable years beginning January 1, 2027 through December 31, 2031, with the program becoming inoperative December 1, 2032

Imposes a 2.5% penalty on distributions used for non-qualified expenses, and requires Franchise Tax Board reporting on program participation starting May 1, 2029