House Bill No. by Representative Tarver proposes the establishment of an individual income tax deduction for contributions made to certain deductible savings accounts. The bill enacts new legal language under R.S. 47:293(9)(a)(xxvii) and 297.2, which allows taxpayers to deduct contributions made during a taxable year to these accounts, specifically for qualified expenses related to retrofitting roofs to fortified standards and for homeowner's insurance deductibles. The deduction is limited to one per account holder, regardless of the number of accounts owned, and specifies that contributions exceeding the allowable amounts must be included in the taxpayer's taxable income.

The bill outlines the definitions of "account holder," "qualified expenses," and "qualified deductible," and establishes contribution limits based on the amount of the qualified deductible. For deductibles of $1,000 or less, contributions are capped at $2,000, while for higher deductibles, the limit is either twice the deductible amount or $25,000, whichever is lower. Additionally, the bill includes provisions regarding the tax implications of distributions from these accounts, documentation requirements for taxpayers, and the authority for the Department of Revenue to create necessary rules for implementation. The provisions of this act will apply to deposits made on or after January 1, 2026, with an effective date of the same.