AN ACT RELATING TO TAXATION -- CATASTROPHE SAVINGS ACCOUNTS ACT

SB 2640 would establish a new type of tax-advantaged savings account designed for unexpected major expenses like natural disasters or serious medical emergencies. The bill creates a legal framework for these "catastrophe savings accounts," allowing taxpayers to contribute funds under specific state tax rules. It would directly affect individuals who qualify to open such accounts for emergency expenses. The bill was introduced to the Senate Commerce committee on February 27, 2026, and remains in the early stages of consideration.