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AlabamaHB272026 Regular SessionHouseWALLET

Relating to Catastrophe Savings Accounts; expands allowable expenses

Sponsored By: Chip Brown (Republican)

Enacted

Taxation & Revenue

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Homeowners can save more for storms

For tax years beginning January 1, 2027, or later, insured Alabama taxpayers get higher Catastrophe Savings Account contribution limits. With a qualifying deductible of $1,000 or less, the $2,000 limit grows by up to $15,000 for other qualified catastrophe expenses. With a deductible over $1,000, the limit is the lesser of $15,000 or twice the deductible, plus up to $15,000 for those other expenses. These totals can reach $17,000 or $30,000, respectively; they are contribution limits, not tax-savings amounts. Taxpayers can also keep contributing after a tax-free withdrawal, subject to the account’s contribution limits and other existing rules.

Homeowners get broader storm savings coverage

The law takes effect October 1, 2026; changes apply to tax years beginning January 1, 2027, or later. Alabama income taxpayers can use a Catastrophe Savings Account for one home they own in Alabama. The home no longer has to be their legal residence, but each taxpayer can still have only one account. State-tax-free withdrawals now cover annual FORTIFIED insurance endorsements and work that reduces hurricane, rising floodwater, or catastrophic windstorm damage. Eligible work includes reroofing and evaluation services to obtain a FORTIFIED designation.

Sponsors & Cosponsors

Sponsor

  • Chip Brown

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 268 • No: 0

Senate vote • 2/10/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 334

Yes: 32 • No: 0

Senate vote • 2/10/2026

Third Reading in Second House

Yes: 32 • No: 0

House vote • 1/22/2026

Third Reading in House of Origin

Yes: 102 • No: 0

House vote • 1/22/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 134

Yes: 102 • No: 0

Actions Timeline

  1. Enacted

    2/24/2026House

  2. Signature Requested

    2/17/2026Senate

  3. Delivered to Governor

    2/17/2026House

  4. Ready to Enroll

    2/12/2026House

  5. Enrolled

    2/12/2026House

  6. Third Reading in Second House

    2/10/2026Senate

  7. Motion to Read a Third Time and Pass - Adopted Roll Call 334

    2/10/2026Senate

  8. Read for the Second Time and placed on the Calendar

    2/5/2026Senate

  9. Reported Out of Committee Second House

    2/4/2026Senate

  10. Pending Committee Action in Second House

    1/23/2026Senate

  11. Third Reading in House of Origin

    1/22/2026House

  12. Motion to Read a Third Time and Pass - Adopted Roll Call 134

    1/22/2026House

  13. Read for the first time and referred to the Senate Committee on Banking and Insurance

    1/22/2026Senate

  14. Reported Out of Committee House of Origin

    1/14/2026House

  15. Read for the Second Time and placed on the Calendar

    1/14/2026House

  16. Read for the first time and referred to the House Committee on Insurance

    1/13/2026House

  17. Pending Committee Action in House of Origin

    1/13/2026House

Bill Text

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