Statewide Iowa – A plan to let Iowans prepare for natural disasters by setting aside money in a tax-free catastrophic savings account is under review in the Iowa legislature. Representative Austin Harris, a Republican from Montour, says a dozen other states have similar laws on the books.
There would be lifetime limits on how much could be deposited in the accounts. Limits for Iowans who have insurance on their home would in the one- to two-thousand dollar range, while Iowans without insurance could save far more, with the limit based on the assessed value of their home. However, no more than 350-thousand dollars could be held in one of these proposed catastrophic savings accounts. Withdrawals for disaster-related expenses would not be subject to the state income tax.
Many homes in Greenfield were leveled by a tornado on May 21, 2024. (Photo by Mike Peterson, KMA Radio)
