House Bill No. 127, introduced by Representative Tarver, establishes an individual income tax deduction for contributions made to certain deductible savings accounts. The bill enacts new provisions under R.S. 47:293(9)(a)(xxvii) and 297.2, allowing account holders—defined as resident taxpayers who are insurance policyholders for their primary residence—to deduct contributions made during a taxable year to these accounts. The deduction is limited to one per account holder, regardless of the number of accounts owned, and is intended to cover qualified expenses related to retrofitting roofs to fortified standards and homeowner's insurance deductibles.

The bill outlines specific limits on the amount that can be contributed to these accounts based on the size of the qualified deductible, with a maximum of $2,000 for deductibles of $1,000 or less, and up to $25,000 for higher deductibles. It also stipulates that any excess contributions beyond the allowable limits must be included in the account holder's taxable income. Additionally, distributions from the accounts that are not used for qualified expenses will be taxable, and account holders must maintain documentation of contributions and expenses. The provisions of this act will apply to deposits made on or after January 1, 2026, and the act will take effect on the same date.