HF 988: Creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions

What it does

This bill allows individuals who are residents, on or after January 1, 2026, to open an interest-bearing savings account with a state or federally chartered bank, savings and loan association, credit union, or trust company in this state and designate the account as a catastrophic savings account (account) for the purpose of financing the payment of qualified catastrophic expenses. “Qualified catastrophic expense” is defined in the bill to mean the payment of a homeowner’s property and casualty insurance deductible under an insurance policy covering the account holder’s homestead, if the policy covers flood, windstorm, or another catastrophic event, or the equivalent of such payments by an uninsured account holder.

Senate subcommittee · named April 28, 2025

• Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
• Sen. Tony Bisignano (D) · tony.bisignano@legis.iowa.gov
• Sen. David D. Rowley (R) · david.rowley@legis.iowa.gov

Lobbying · 7 for, 0 against

For: Independent Insurance Agents of Iowa; Iowa Bankers Association; Iowa Bankers Insurance & Services, Inc.; Iowa Bankers Mortgage Corp.; Iowa Credit Union League; Iowa Mortgage Association; State Farm Insurance

In plain words

1. April 7, 2025Filed in the House
2. April 22, 2025Passed the House, 92–0
3. April 23, 2025Arrived in the Senate
4. April 28, 2025Senate subcommittee named: Dawson, Bisignano and Rowley