New GA catastrophe savings accounts offer storm prep tax breaks

Georgia homeowners have a new way to prepare financially for hurricanes, tornadoes and other natural disasters while getting a state tax break. House Bill 511, which took effect in January, creates tax-advantaged catastrophe savings accounts that work much like a health savings account.

FULL STORY: GA homeowners can save for storms and get a tax break for it, new la

Here are key takeaways:

• Contributions to a catastrophe savings account (CSA) are tax-deductible, interest earned is tax-exempt and qualified withdrawals are not counted as taxable income. Funds can only be used after the governor declares a disaster or emergency.
• Covered events include hurricanes, tornadoes, floods, earthquakes, ice storms, hail storms, cyclones, windstorms and high winds. Money can go toward paying your insurance deductible or uninsured repair costs to your primary residence.
• Only Georgia resident taxpayers qualify, with one account allowed per primary residence. Rental properties and vacation homes are not covered, though self-insured homeowners who skip homeowner’s insurance are eligible.
• Contribution limits depend on your deductible. Those with a $1,000 or lower deductible can save up to $2,000, while higher deductibles allow twice the deductible amount up to $25,000. Self-insured homeowners can contribute up to $250,000, but not more than the home’s fair market value.
• To use the account, open a regular savings or money market account, label it as a CSA and claim the deduction on Georgia Form 500. Over-contributions must be withdrawn and reported as income.

The summary points above were compiled with the help of AI tools and edited by journalists. The full story in the link at top was reported, written and edited entirely by journalists.

This story was originally published June 16, 2026 at 5:30 AM with the headline "New GA catastrophe savings accounts offer storm prep tax breaks."