RI S2640

Creates tax-advantaged "catastrophe savings accounts" allowing Rhode Island residents to save for expenses from governor-declared disasters including hurricanes, floods, tornadoes, earthquakes, and other severe weather events

Contributions are tax-deductible and interest earned is tax-exempt; withdrawals used for qualified catastrophe expenses (insurance deductibles and uninsured repair costs to primary residence) are not taxed

Contribution limits vary: up to $2,000 for deductibles of $1,000 or less; up to twice the deductible amount (maximum $25,000) for higher deductibles; up to $250,000 for self-insured homeowners

Only one account permitted per primary residence; non-qualified withdrawals must be included in taxable income

Takes effect July 1, 2026, applicable to tax years beginning January 1, 2027 or later