MS SB2946

Establishes "catastrophe savings accounts" as dedicated savings or money market accounts for homeowners to cover insurance deductibles and uninsured losses from hurricanes, windstorms, floods, ice storms, and earthquakes.

Allows individual taxpayers an income tax deduction for contributions to catastrophe savings accounts and exempts all interest earned in these accounts from state income tax.

Limits contributions based on insurance deductible amounts: $2,000 for deductibles of $1,000 or less, up to $15,000 or twice the deductible for higher deductibles, and up to $350,000 for self-insured homeowners.

Requires distributions from catastrophe savings accounts to be included in taxable income unless used for qualified catastrophe expenses, with an additional 2.5% tax penalty on non-qualified distributions (exceptions apply for account holders over age 70 or those who no longer own a homestead).

Protects catastrophe savings accounts from attachment, levy, garnishment, or legal process and provides special treatment for surviving spouses who elect to continue accounts after the account holder's death.