HSB 149: 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.

House subcommittee · named February 11, 2025

• Rep. Austin Harris (R) · austin.harris@legis.iowa.gov
• Rep. Rob Johnson (D) · rob.johnson@legis.iowa.gov
• Rep. Mike Vondran (R) · mike.vondran@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. February 11, 2025Filed in the House and sent to the Commerce committee
2. February 11, 2025House subcommittee named: Harris, Johnson, R. and Vondran
3. February 19, 2025Subcommittee recommended passing it
4. February 25, 2025Approved by the House committee
5. February 25, 2025Committee vote: 22–0
6. February 27, 2025Approved by the House committee, and given a new number: HF 622