CT HB05519

Authorizes homeowners insurance policyholders to establish a Catastrophe Savings Account (CSA) to cover deductibles for damage from hurricanes, rising floodwaters, or catastrophic windstorm events not covered by insurance, effective July 1, 2016.

Limits CSA contributions to twice the homeowners insurance policy deductible, with a maximum aggregate cap of $15,000, and makes contributions tax deductible under Connecticut income tax (Chapter 229).

Requires distributions from CSAs to be used only for uninsured damage expenses; any distributions used for other purposes or exceeding actual expenses must be included in gross income for tax purposes.

Protects CSA funds from attachment, levy, garnishment, or legal process.

Establishes an income tax deduction for expenses up to $15,000 paid to reconstruct or repair a dwelling substantially impaired by a faulty foundation that threatens structural integrity and is not covered by homeowners insurance, applicable to taxable years beginning January 1, 2016.