I 
119TH CONGRESS 
1ST SESSION 
H. R. 440 
To amend the Internal Revenue Code of 1986 to provide for Residential 
Emergency Asset-accumulation Deferred Taxation Yield (READY) accounts. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 15, 2025 
Ms. LEE of Florida (for herself, Mr. MOSKOWITZ, Mr. BUCHANAN, and Mr. 
SCOTT FRANKLIN of Florida) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for Residential Emergency Asset-accumulation Deferred 
Taxation Yield (READY) accounts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘READY Accounts 
Act’’. 
SEC. 2. READY ACCOUNTS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
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by redesignating section 224 as section 225 and by insert-
ing after section 223 the following new section: 
‘‘SEC. 224. RESIDENTIAL EMERGENCY ASSET-ACCUMULA-
TION DEFERRED TAXATION YIELD (READY) 
ACCOUNTS. 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction for the tax-
able year an amount equal to the aggregate amount paid 
in cash during such taxable year by or on behalf of such 
individual to a Residential Emergency Asset-accumulation 
Deferred Taxation Yield (READY) account such indi-
vidual. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
deduction under subsection (a) to an individual for 
the taxable year shall not exceed $4,500. 
‘‘(2) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2025, the $4,500 dollar amount under para-
graph (1) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
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endar year in which the taxable year be-
gins, determined by substituting in sub-
paragraph (A)(ii) thereof ‘calendar year 
2024’ for ‘calendar year 2016’. 
‘‘(B) ROUNDING.—If any amount as ad-
justed under paragraph (1) is not a multiple of 
$50, such dollar amount shall be rounded to the 
next lowest multiple of $50. 
‘‘(c) RESIDENTIAL EMERGENCY ASSET-ACCUMULA-
TION
DEFERRED
TAXATION
YIELD
(READY) AC-
COUNT.—For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘Residential 
Emergency Asset-accumulation Deferred Taxation 
Yield (READY) account’ means a trust created or 
organized in the United States as a Residential 
Emergency Asset-accumulation Deferred Taxation 
Yield (READY) account exclusively for the purpose 
of paying the qualified home disaster mitigation and 
recovery expenses of the account beneficiary, but 
only if the written governing instrument creating the 
trust meets the following requirements: 
‘‘(A) Except in the case of a rollover con-
tribution described in subsection (e)(5), no con-
tribution will be accepted— 
‘‘(i) unless it is in cash, or 
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‘‘(ii) to the extent such contribution, 
when added to previous contributions to 
the trust for the calendar year, exceeds the 
dollar amount in effect under subsection 
(b)(1). 
‘‘(B) The trustee is a bank (as defined in 
section 408(n)) or another person who dem-
onstrates to the satisfaction of the Secretary 
that the manner in which such person will ad-
minister the trust will be consistent with the re-
quirements of this section. 
‘‘(C) No part of the trust assets will be in-
vested in life insurance contracts. 
‘‘(D) The assets of the trust will not be 
commingled with other property except in a 
common trust fund or common investment 
fund. 
‘‘(E) The interest of an individual in the 
balance in his account is nonforfeitable. 
‘‘(2) QUALIFIED HOME DISASTER MITIGATION 
AND RECOVERY EXPENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
home disaster mitigation and recovery expenses’ 
means, with respect to an account beneficiary, 
amounts paid by such beneficiary for— 
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‘‘(i) 
qualified 
disaster 
mitigation 
measures, or 
‘‘(ii) qualified disaster recovery costs, 
with respect to a qualified home of the tax-
payer. 
‘‘(B) QUALIFIED
DISASTER
MITIGATION 
MEASURES.—For purposes of subparagraph 
(A)— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied disaster mitigation measures’ means 
any measure described in clause (ii) with 
respect to a qualified home of the taxpayer 
if— 
‘‘(I) such measure meets such 
criteria as the Secretary, in consulta-
tion with the Administrator of the 
Federal 
Emergency 
Management 
Agency, considers appropriate to miti-
gate damage from a natural or other 
disaster, and 
‘‘(II) is certified by a qualified 
industry professional as meeting such 
criteria. 
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‘‘(ii) MITIGATION
MEASURES.—The 
following measures are measures described 
in this clause: 
‘‘(I) 
Installing 
a 
roofing 
underlayment to sheathing. 
‘‘(II) Replacing a roof covering. 
‘‘(III) Applying a foam adhesive 
to reinforce the roof structure. 
‘‘(IV) Strengthening connection 
of roof deck to roof framing. 
‘‘(V) Strengthening roof-to-wall 
connections. 
‘‘(VI) Strengthening soffits. 
‘‘(VII) Strengthening attic ven-
tilation openings. 
‘‘(VIII) Installing impact-resist-
ant windows. 
‘‘(IX) Installing impact-resistant 
entry doors. 
‘‘(X) Elevating the residential 
home. 
‘‘(XI) Installing ground anchors. 
‘‘(XII) If the qualified home was 
built according to a building code 
from a prior year, achieving the cur-
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rent building code standard in the ap-
plicable State or locality. 
‘‘(XIII) Such other measures de-
termined by the Secretary, in con-
sultation with the Administrator of 
the Federal Emergency Management 
Agency, to be consistent with the pur-
poses of this section. 
‘‘(iii) QUALIFIED INDUSTRY PROFES-
SIONAL.—The term ‘qualified industry pro-
fessional’ means an individual who meets 
such rules and standards as determined 
appropriate by the Secretary, in consulta-
tion with the Administrator of the Federal 
Emergency Management Agency. 
‘‘(C) QUALIFIED
DISASTER
RECOVERY 
COSTS.—For purposes of subparagraph (A), the 
term ‘qualified disaster recovery costs’ means 
costs for repairing damage to the qualified 
home of the taxpayer if such damage arises 
from fire, storm, or other casualty and such 
costs are not compensated for by insurance or 
otherwise. 
‘‘(D) QUALIFIED HOME.—For purposes of 
this section, the term ‘qualified home’ means, 
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with respect to any taxable year, any structure 
which is— 
‘‘(i) owned by the taxpayer, and 
‘‘(ii) used by the taxpayer as the tax-
payer’s principal residence (within the 
meaning of section 121) for the taxable 
year. 
‘‘(3) ACCOUNT
BENEFICIARY.—The term ‘ac-
count beneficiary’ means the individual on whose be-
half the Residential Emergency Asset-accumulation 
Deferred Taxation Yield (READY) account was es-
tablished. 
‘‘(4) CERTAIN RULES TO APPLY.—Rules similar 
to the following rules shall apply for purposes of this 
section: 
‘‘(A) Section 219(d)(2) (relating to no de-
duction for rollovers). 
‘‘(B) Section 219(f)(3) (relating to time 
when contributions deemed made). 
‘‘(C) Section 219(f)(5) (relating to em-
ployer payments). 
‘‘(D) Section 408(g) (relating to commu-
nity property laws). 
‘‘(E) Section 408(h) (relating to custodial 
accounts). 
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‘‘(d) TAX TREATMENT OF ACCOUNTS.— 
‘‘(1) IN GENERAL.—A Residential Emergency 
Asset-accumulation 
Deferred 
Taxation 
Yield 
(READY) account is exempt from taxation under 
this subtitle unless such account has ceased to be a 
Residential Emergency Asset-accumulation Deferred 
Taxation Yield (READY) account. Notwithstanding 
the preceding sentence, any such account is subject 
to the taxes imposed by section 511 (relating to im-
position of tax on unrelated business income of char-
itable, etc. organizations). 
‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 
to the rules of paragraphs (2) and (4) of section 
408(e) shall apply to Residential Emergency Asset- 
accumulation Deferred Taxation Yield (READY) ac-
counts, and any amount treated as distributed under 
such rules shall be treated as not used to pay quali-
fied home disaster mitigation and recovery expenses. 
‘‘(e) TAX TREATMENT OF DISTRIBUTIONS.— 
‘‘(1) AMOUNTS
USED
FOR
QUALIFIED
HOME 
DISASTER MITIGATION AND RECOVERY EXPENSES.— 
Any amount paid or distributed out of a Residential 
Emergency Asset-accumulation Deferred Taxation 
Yield (READY) account which is used exclusively to 
pay qualified home disaster mitigation and recovery 
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expenses of the account beneficiary shall not be in-
cludible in gross income. 
‘‘(2) INCLUSION OF AMOUNTS NOT USED FOR 
QUALIFIED HOME DISASTER MITIGATION AND RE-
COVERY EXPENSES.—Any amount paid or distrib-
uted out of a Residential Emergency Asset-accumu-
lation Deferred Taxation Yield (READY) account 
which is not used exclusively to pay the qualified 
home disaster mitigation and recovery expenses of 
the account beneficiary shall be included in the gross 
income of such beneficiary. 
‘‘(3) EXCESS CONTRIBUTIONS RETURNED BE-
FORE DUE DATE OF RETURN.— 
‘‘(A) IN
GENERAL.—If any excess con-
tribution is contributed for a taxable year to 
any Residential Emergency Asset-accumulation 
Deferred Taxation Yield (READY) account of 
an individual, paragraph (2) shall not apply to 
distributions from the Residential Emergency 
Asset-accumulation Deferred Taxation Yield 
(READY) accounts of such individual (to the 
extent such distributions do not exceed the ag-
gregate excess contributions to all such ac-
counts of such individual for such year) if— 
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‘‘(i) such distribution is received by 
the individual on or before the last day 
prescribed by law (including extensions of 
time) for filing such individual’s return for 
such taxable year, and 
‘‘(ii) such distribution is accompanied 
by the amount of net income attributable 
to such excess contribution. 
Any net income described in clause (ii) shall be 
included in the gross income of the individual 
for the taxable year in which it is received. 
‘‘(B) EXCESS
CONTRIBUTION.—For pur-
poses of subparagraph (A), the term ‘excess 
contribution’ means any contribution (other 
than a rollover contribution described in para-
graph (5)) which is not deductible under this 
section. 
‘‘(4) ADDITIONAL TAX ON DISTRIBUTIONS NOT 
USED FOR QUALIFIED HOME DISASTER MITIGATION 
AND
RECOVERY
EXPENSES.—The tax imposed by 
this chapter on the account beneficiary for any tax-
able year in which there is a payment or distribution 
from a Residential Emergency Asset-accumulation 
Deferred Taxation Yield (READY) account of such 
beneficiary which is includible in gross income under 
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paragraph (2) shall be increased by 20 percent of 
the amount which is so includible. 
‘‘(5) ROLLOVER CONTRIBUTION.—An amount is 
described in this paragraph as a rollover contribu-
tion if it meets the requirements of subparagraphs 
(A) and (B). 
‘‘(A) IN
GENERAL.—Paragraph (2) shall 
not apply to any amount paid or distributed 
from a Residential Emergency Asset-accumula-
tion Deferred Taxation Yield (READY) account 
to the account beneficiary to the extent the 
amount received is paid into a Residential 
Emergency Asset-accumulation Deferred Tax-
ation Yield (READY) account for the benefit of 
such beneficiary not later than the 60th day 
after the day on which the beneficiary receives 
the payment or distribution. 
‘‘(B) LIMITATION.—This paragraph shall 
not apply to any amount described in subpara-
graph (A) received by an individual from a Res-
idential Emergency Asset-accumulation De-
ferred Taxation Yield (READY) account if, at 
any time during the 1-year period ending on the 
day of such receipt, such individual received any 
other amount described in subparagraph (A) 
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from a Residential Emergency Asset-accumula-
tion Deferred Taxation Yield (READY) account 
which was not includible in the individual’s 
gross income because of the application of this 
paragraph. 
‘‘(6) TRANSFER OF ACCOUNT INCIDENT TO DI-
VORCE.—The transfer of an individual’s interest in 
a Residential Emergency Asset-accumulation De-
ferred Taxation Yield (READY) account to an indi-
vidual’s spouse or former spouse under a divorce or 
separation instrument described in clause (i) of sec-
tion 121(d)(3)(C) shall not be considered a taxable 
transfer made by such individual notwithstanding 
any other provision of this subtitle, and such interest 
shall, after such transfer, be treated as a Residential 
Emergency Asset-accumulation Deferred Taxation 
Yield (READY) account with respect to which such 
spouse is the account beneficiary. 
‘‘(7) TREATMENT AFTER DEATH OF ACCOUNT 
BENEFICIARY.— 
‘‘(A) TREATMENT IF DESIGNATED BENE-
FICIARY
IS
SPOUSE.—If the account bene-
ficiary’s surviving spouse acquires such bene-
ficiary’s interest in a Residential Emergency 
Asset-accumulation Deferred Taxation Yield 
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(READY) account by reason of being the des-
ignated beneficiary of such account at the death 
of the account beneficiary, such Residential 
Emergency Asset-accumulation Deferred Tax-
ation Yield (READY) account shall be treated 
as if the spouse were the account beneficiary. 
‘‘(B) OTHER CASES.—If, by reason of the 
death of the account beneficiary, any person ac-
quires the account beneficiary’s interest in a 
Residential Emergency Asset-accumulation De-
ferred Taxation Yield (READY) account in a 
case to which subparagraph (A) does not 
apply— 
‘‘(i) such account shall cease to be a 
Residential Emergency Asset-accumulation 
Deferred Taxation Yield (READY) ac-
count as of the date of death, and 
‘‘(ii) an amount equal to the fair mar-
ket value of the assets in such account on 
such date shall be includible if such person 
is not the estate of such beneficiary, in 
such person’s gross income for the taxable 
year which includes such date, or if such 
person is the estate of such beneficiary, in 
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