HB 754 Summary

• Authorizes Mississippi taxpayers to establish catastrophe savings accounts to pay insurance deductibles and uninsured losses from hurricanes, floods, windstorms, or other catastrophic events to their primary residence.

• Excludes contributions to catastrophe savings accounts, interest earned, and distributions used for qualified catastrophe expenses from state income tax for the account holder.

• Limits annual contributions based on insurance deductible amount: $2,000 for deductibles of $1,000 or less, up to $15,000 for higher deductibles, or up to $250,000 for self-insured individuals (not exceeding home value).

• Imposes a 2.5% penalty tax on non-qualified distributions, except when the account holder no longer owns a qualifying primary residence or reaches age 70 (for self-insured accounts).

• Protects catastrophe savings account assets from seizure through execution, attachment, levy, or garnishment under state law.