,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hfeg  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,octob] #bc1 #bjbj,mr4
 ,cl\d 7= himself1 ,mr4 ,web] ( ,texas1 
,mr4 ,gohm]t1 & ,mr4 ,k+ ( ,i[a7        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide em]g5cy sav+s  
acc\nts = individuals4  #a4 ,%ort title 
,?is ,act may be cit$ z ! ,em]g5cy      
,sav+s ,acc\nts ,act ( #bjbj4  #b4      
,d$uction = contributions to em]g5cy    
sav+s acc\nts  7a7 ,9 g5]al ,"p ,,vii ( 
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf 7relat+ to        
additional itemiz$ d$uctions =          
individuals7 is am5d$ by r$esignat+     
section #bbd z section #bbe & by ins]t+ 
aft] section #bbc ! foll[+ new section3 
#bbd4 ,em]g5cy sav+s acc\nts  7a7       
,d$uction all[$ ,9 ! case ( a eligible  
individual1 !re %all be all[$ z a       
d$uction = ! taxable ye> an am\nt equal 
to ! aggregate am\nt paid dur+ su*      

taxable ye> by or on behalf ( su*       
individual to an em]g5cy sav+s acc\nt ( 
su* individual4  7b7 ,limitation  7#a7  
,9 g5]al ,! am\nt all[$ z a d$uction "u 
subsection 7a7 to an individual = !     
taxable ye> %all n exce$ #e1jjj4  7#b7  
,p>tial ye> ( eligibility ,9 ! case ( an
 individual :o is an eligible individual
 = only a portion ( ! taxable ye>1 !    
limitation "u p>agraph 7#a7 %all be same
 proportion ( #e1jjj z su* portion be>s 
to ! entire taxable ye>4  7c7 ,eligible 
individual ,= purposes ( ?is section1 ! 
t]m eligible individual means any       
individual if su* individual occupi$ any
 resid5ce 9 ! ,unit$ ,/ates at any "t   
dur+ ! taxable ye>4  7d7 ,em]g5cy sav+s 
acc\nt ,= purposes ( ?is section-- 7#a7 
,9 g5]al ,! t]m em]g5cy sav+s acc\nt    
means a tru/ creat$ or organiz$ 9 !     
,unit$ ,/ates z an em]g5cy sav+s acc\nt 
exclusively = ! purpose ( pay+ !        
qualifi$ disa/] & public heal? em]g5cy  
exp5ses ( ! acc\nt b5efici>y1 b only if 
! writt5 gov]n+ in/rum5t creat+ ! tru/  

meets ! foll[+ requirem5ts3 7,a7 ,except
 9 ! case ( a rollov] contribution      
describ$ 9 subsection 7f77#e71 no       
contribution w be accept$-- 7i7 unless x
 is 9 ca%1 or  7ii7 to ! ext5t su*      
contribution1 :5 add$ to previ\s        
contributions to ! tru/ = ! cal5d> ye>1 
exce$s ! doll> limitation 9 effect "u   
subsection 7b74  7,b7 ,! tru/ee is a    
bank 7z def9$ 9 section #djh7n771 an    
insurance company 7z def9$ 9 section    
#haf71 or ano!r p]son :o demon/rates to 
! satisfaction ( ! ,secret>y t ! mann] 9
 :i* su* p]son w adm9i/] ! tru/ w be    
consi/5t ) ! requirem5ts ( ?is section4 
7,c7 ,no "p ( ! tru/ assets w be inve/$ 
9 life insurance contracts4  7,d7 ,!    
assets ( ! tru/ w n be comm+l$ ) o!r    
prop]ty except 9 a common tru/ fund or  
common inve/m5t fund4  7,e7 ,! int]e/ ( 
an individual 9 ! balance 9 8 acc\nt is 
non=feitable4  7#b7 ,qualifi$ disa/] &  
public heal? em]g5cy exp5ses ,! t]m     
qualifi$ disa/] & public heal? em]g5cy  
exp5ses means-- 7,a7 disa/] mitigation  

exp5ses1  7,b7 disa/] recov]y exp5ses1  
7,c7 public heal? em]g5cy exp5ses1 &    
7,d7 unemploym5t relat$ exp5ses4  7#c7  
,disa/] mitigation exp5ses ,! t]m disa/]
 mitigation exp5ses means exp5ses = any 
( ! foll[+ ) respect to ! resid5ce      
ref]r$ to 9 subsection 7c73 7,a7        
,tornado safe rooms manufactur$ or      
con/ruct$ 9 accordance ) ,,fema #cbj or 
,,fema #cfa guidance or tornado %elt]s  
manufactur$ or con/ruct$ 9 accordance ) 
! ,national ,/orm ,%elt]_/,int]national 
,code ,c\ncil #ejj /&>d4  7,b7 ,op5+    
protection1 includ+ impact & w9d        
resi/ant w9d[s1 ext]ior doors1 & g>age  
doors4  7,c7 ,re9=cem5t ( ro(-to-wall & 
floor-to-wall connections = w9d or      
seismic activity4  7,d7 ,ro( cov]+ =    
impact1 fire1 or high w9d resi/ance4    
7,e7 ,cripple & %e> walls to resi/      
seismic activity4  7,f7 ,flood resi/ant 
build+ mat]ials4  7,g7 ,elevat+         
/ructures & utilities above base flood  
elevation4  7,h7 ,fire resi/ant ext]ior 
wall assemblies_/sy/ems4  7,i7 ,lightn+ 

protection sy/ems4  7,j7 ,:ole home /&by
 g5]ators4  7,k7 ,any activity specifi$ 
by ! ,secret>y z appropriate to mitigate
 ! risks ( future haz>ds 7includ+       
e>?quake1 flood1 hail1 hurricane1       
s9khole1 lightn+1 p[] outage1 tornado1 &
 wildfire7 & o!r natural disa/]s4  7#d7 
,disa/] recov]y exp5ses ,! t]m disa/]   
recov]y exp5ses means ) respect to !    
resid5ce ref]r$ to 9 subsection 7c7 any 
exp5se incurr$ to replace or repair     
disa/]-relat$ un9sur$ p]sonal casualty  
p]sonal losses total+ #a1jjj or great]4 
7#e7 ,disa/]-relat$ un9sur$ p]sonal     
casualty loss ,! t]m disa/]-relat$      
un9sur$ p]sonal casualty loss means a   
p]sonal casualty loss 7z def9$ 9 section
 #afe7;h77#c77;,b71 det]m9$ )\t reg>d to
 ! second s5t5ce !re(7 attributable to a
 ,/ate or f$]ally decl>$ disa/] = :i* a 
d$uction is all[able "u section #afe    
7)\t reg>d to subsection 7h77#a774  7#f7
 ,f$]ally decl>$ disa/] ,! t]m f$]ally  
decl>$ disa/] has ! mean+ giv5 su* t]m  
by section #afe7;i77#e74  7#g7 ,public  

heal? em]g5cy exp5ses ,! t]m public     
heal? em]g5cy exp5ses means exp5ses =   
any ( ! foll[+ ) respect to an          
individual ref]r$ to 9 subsection 7c7 if
 paid or incurr$ :ile a public heal?    
em]g5cy decl>ation is 9 effect & :ile   
su* individual is unemploy$ or has _!   
employm5t /atus r$uc$ f full-"t /atus3  
7,a7 ,*ild c>e exp5ses4  7,b7           
,out-(-pocket heal? c>e co/s1 includ+   
insurance premiums4  7,c7 ,h\s+ exp5ses 
includ+ mortgage1 r5t1 or prop]ty taxes4
  7,d7 ,utilities4  7#h7 ,public heal?  
em]g5cy decl>ation ,! t]m public heal?  
em]g5cy decl>ation means any decl>ation 
( a public heal? em]g5cy by ! ,secret>y 
( ,heal? & ,human ,s]vices "u section   
#cai ( ! ,public ,heal? ,s]vice ,act    
7#db ,u4,s4,c4 #bdg;d74  7#i7           
,unemploym5t relat$ exp5ses ,! t]m      
unemploym5t relat$ exp5ses means1 9 !   
case ( an acc\nt b5efici>y ) any p]iod (
 unemploym5t dur+ ! taxable ye>1 any    
exp5ses dur+ su* taxable ye> :i*1 9 !   
aggregate1 d n exce$ #ejj4  7#aj7       

,acc\nt b5efici>y ,! t]m acc\nt         
b5efici>y means ! individual on ^:      
behalf ! em]g5cy sav+s acc\nt 0         
e/abli%$4  7e7 ,treatm5t ( acc\nt  7#a7 
,9 g5]al ,an em]g5cy sav+s acc\nt is    
exempt f taxation "u ?is subtitle unless
 su* acc\nt has ceas$ to be an em]g5cy  
sav+s acc\nt4 ,not)/&+ ! prec$+ s5t5ce1 
any su* acc\nt is subject to ! taxes    
impos$ by section #eaa 7relat+ to       
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc4 organizations74 
7#b7 ,acc\nt t]m9ations ,rules simil> to
 ! rules ( p>agraphs 7#b7 & 7#d7 (      
section #djh7;e7 %all apply to em]g5cy  
sav+s acc\nts1 & any am\nt treat$ z     
di/ribut$ "u su* rules %all be treat$ z 
n us$ to pay qualifi$ disa/] & public   
heal? em]g5cy exp5ses4  7f7 ,tax        
treatm5t ( di/ributions  7#a7 ,am\nts   
us$ = qualifi$ disa/] & public heal?    
em]g5cy exp5ses ,any am\nt paid or      
di/ribut$ out ( an em]g5cy sav+s acc\nt 
:i* is us$ exclusively to pay qualifi$  
disa/] & public heal? em]g5cy exp5ses ( 

any acc\nt b5efici>y %all n be          
includible 9 gross income4  7#b7        
,inclusion ( am\nts n us$ = qualifi$    
disa/] & public heal? em]g5cy exp5ses   
,any am\nt paid or di/ribut$ out ( an   
em]g5cy sav+s acc\nt :i* is n us$       
exclusively to pay ! qualifi$ disa/] &  
public heal? em]g5cy exp5ses ( ! acc\nt 
b5efici>y %all be includ$ 9 ! gross     
income ( su* b5efici>y4  7#c7 ,excess   
contributions return$ be=e due date (   
return  7,a7 ,9 g5]al ,if any excess    
contribution is contribut$ = a taxable  
ye> to any em]g5cy sav+s acc\nt ( an    
individual1 p>agraph 7#b7 %all n apply  
to di/ributions f ! em]g5cy sav+s       
acc\nts ( su* individual 7to ! ext5t su*
 di/ributions d n exce$ ! aggregate     
excess contributions to all su* acc\nts 
( su* individual = su* ye>7 if-- 7i7 su*
 di/ribution is receiv$ by ! individual 
on or be=e ! la/ day prescrib$ by law   
7includ+ ext5sions ( "t7 = fil+ su*     
individual's return = su* taxable ye>1 &
  7ii7 su* di/ribution is accompani$ by 

! am\nt ( net income attributable to su*
 excess contribution4  ,any net income  
describ$ 9 clause 7ii7 %all be includ$ 9
 ! gross income ( ! individual = !      
taxable ye> 9 :i* x is receiv$4  7,b7   
,excess contribution ,= purposes (      
subp>agraph 7,a71 ! t]m excess          
contribution means any contribution 7o!r
 ?an a rollov] contribution describ$ 9  
p>agraph 7#e77 :i* is n d$uctible "u ?is
 section4  7#d7 ,additional tax on      
di/ributions n us$ = qualifi$ disa/] &  
public heal? em]g5cy exp5ses  7,a7 ,9   
g5]al ,! tax impos$ by ?is *apt] on !   
acc\nt b5efici>y = any taxable ye> 9 :i*
 !re is a paym5t or di/ribution f an    
em]g5cy sav+s acc\nt ( su* b5efici>y :i*
 is includible 9 gross income "u        
p>agraph 7#b7 %all be increas$ by #bj   
p]c5t ( ! am\nt :i* is s includible4    
7,b7 ,exception = disability or dea?    
,subp>agraph 7,a7 %all n apply if !     
paym5t or di/ribution is made aft] !    
acc\nt b5efici>y becomes disabl$ )9 !   
mean+ ( section #gb7m77#g7 or dies4     

7#e7 ,rollov] contribution ,an am\nt is 
describ$ 9 ?is p>agraph z a rollov]     
contribution if x meets ! requirem5ts ( 
subp>agraphs 7,a7 & 7,b74 7,a7 ,9 g5]al 
,p>agraph 7#b7 %all n apply to any am\nt
 paid or di/ribut$ f an em]g5cy sav+s   
acc\nt to ! acc\nt b5efici>y to ! ext5t 
! am\nt receiv$ is paid into an em]g5cy 
sav+s acc\nt = ! b5efit ( su* b5efici>y 
n lat] ?an ! #fj? day aft] ! day on :i* 
! b5efici>y receives ! paym5t or        
di/ribution4  7,b7 ,limitation ,?is     
p>agraph %all n apply to any am\nt      
describ$ 9 subp>agraph 7,a7 receiv$ by  
an individual f an em]g5cy sav+s acc\nt 
if1 at any "t dur+ ! #a-ye> p]iod end+  
on ! day ( su* receipt1 su* individual  
receiv$ any o!r am\nt describ$ 9        
subp>agraph 7,a7 f an em]g5cy sav+s     
acc\nt :i* 0 n includible 9 !           
individual's gross income because ( !   
application ( ?is p>agraph4  7g7        
,co/-(-,liv+ adju/m5t  7#a7 ,9 g5]al ,9 
! case ( any taxable ye> beg9n+ 9 a     
cal5d> ye> aft] #bjbj1 ea* #e1jjj am\nt 

9 subsection 7b7 & ! #c1jjj am\nt 9     
subsection 7d77#d7 %all be increas$ by  
an am\nt equal to-- 7,a7 su* doll>      
am\nt1 multipli$ by  7,b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* su* taxable ye>     
beg9s det]m9$ by sub/itut+ cal5d> ye>   
#bjai = cal5d> ye> #bjaf 9 subp>agraph  
7,a77ii7 !re(4  7#b7 ,r\nd+ ,if any     
increase "u p>agraph 7#a7 is n a        
multiple ( #ej1 su* increase %all be    
r\nd$ to ! ne>e/ multiple ( #ej4  7h7   
,special rules  7#a7 ,d5ial ( d$uction  
to dep5d5ts ,no d$uction %all be all[$  
"u ?is section to any individual )      
respect to :om a d$uction "u section    
#aea is all[able to ano!r taxpay] = a   
taxable ye> beg9n+ 9 ! cal5d> ye> 9 :i* 
su* individual's taxable ye> beg9s4     
7#b7 ,taxable ye> mu/ be full taxable   
ye> ,except 9 ! case ( a taxable ye>    
clos$ by reason ( ! dea? ( ! taxpay]1 no
 d$uction %all be all[$ "u ?is section 9
 ! case ( a taxable ye> cov]+ a p]iod ( 
less ?an #ab mon?s4  7#c7 ,c]ta9 rules  

to apply ,rules simil> to ! foll[+ rules
 %all apply = purposes ( ?is section3   
7,a7 ,section #bai7;d77#b7 7relat+ to no
 d$uction = rollov]s74  7,b7 ,section   
#bai7;f77#c7 7relat+ to "t :5           
contributions deem$ made74  7,c7        
,section #bai7;f77#e7 7relat+ to employ]
 paym5ts74  7,d7 ,section #djh7;g7      
7relat+ to community prop]ty laws74     
7,e7 ,section #djh7;h7 7relat+ to       
cu/odial acc\nts74  7,f7 ,section       
#bbc7;f77#g7 7relat+ to transf] ( acc\nt
 incid5t to divorce74  7,g7 ,section    
#bbc7;f77#h7 7relat+ to treatm5t aft]   
dea? ( acc\nt b5efici>y74  7#d7         
,coord9ation ) casualty loss d$uction   
,no d$uction %all be all[$ "u section   
#afe = a loss = :i* a disa/] recov]y    
exp5se paym5t is made f an em]g5cy sav+s
 acc\nt4  7i7 ,reports ,! ,secret>y may 
require ! tru/ee ( an em]g5cy sav+s     
acc\nt to make su* reports reg>d+ su*   
acc\nt to ! ,secret>y & to ! acc\nt     
b5efici>y ) respect to contributions1   
di/ributions1 ! return ( excess         

contributions1 & su* o!r matt]s z !     
,secret>y det]m9es appropriate4  4  7b7 
,d$uction all[$ :e!r or n individual    
itemizes o!r d$uctions ,section #fb7;a7 
( su* ,code is am5d$ by ins]t+ aft]     
p>agraph 7#ba7 ! foll[+ new p>agraph3   
7#bb7 ,em]g5cy sav+s acc\nts ,! d$uction
 all[$ by section #bbd4  4  7c7 ,tax on 
excess contributions ,section #digc (   
su* ,code 7relat+ to tax on excess      
contributions to c]ta9 tax-favor$       
acc\nts & annuities7 is am5d$-- 7#a7 by 
/rik+ or at ! end ( subsection 7a77#e71 
by ins]t+ or at ! end ( subsection      
7a77#f71 & by ins]t+ aft] subsection    
7a77#f7 ! foll[+ new p>agraph3  7#g7 an 
em]g5cy sav+s acc\nt 7)9 ! mean+ (      
section #bbd7;d771  2 &  7#b7 by add+ at
 ! end ! foll[+ new subsection3  7i7    
,excess contributions to em]g5cy sav+s  
acc\nts ,= purposes ( ?is section1 9 !  
case ( em]g5cy sav+s acc\nts 7)9 ! mean+
 ( section #bbd7;d771 ! t]m excess      
contributions means ! sum (-- 7#a7 !    
aggregate am\nt contribut$ = ! taxable  

ye> to ! acc\nts 7o!r ?an a rollov]     
contribution describ$ 9 section         
#bbd7;f77#e77 :i* is n all[able z a     
d$uction "u section #bbd = su* ye>1 &   
7#b7 ! am\nt det]m9$ "u ?is subsection =
 ! prec$+ taxable ye>1 r$uc$ by ! sum   
(-- 7,a7 ! di/ributions out ( ! acc\nts 
:i* 7 includ$ 9 gross income "u section 
#bbd7;f77#b71 &  7,b7 ! excess 7if any7 
(-- 7i7 ! maximum am\nt all[able z a    
d$uction "u section #bbd7;b7 = ! taxable
 ye>1 ov]  7ii7 ! am\nt contribut$ to ! 
acc\nts = ! taxable ye>4  ,= purposes ( 
?is subsection1 any contribution :i* is 
di/ribut$ out ( ! em]g5cy sav+s acc\nt 9
 a di/ribution to :i* section           
#bbd7;f77#c7 applies %all be treat$ z an
 am\nt n contribut$4  4  7d7 ,failure   
,to provide reports on em]g5cy sav+s    
acc\nts ,section #ffic7;a77#b7 ( su*    
,code is am5d$ by r$esignat+            
subp>agraphs 7,d71 7,e71 & 7,f7 z       
subp>agraphs 7,e71 7,f71 & 7,g71        
respectively1 & by ins]t+ aft]          
subp>agraph 7,c7 ! foll[+ new           

subp>agraph3  7,d7 section #bbd7;i7     
7relat+ to em]g5cy sav+s acc\nts71  4   
7e7 ,cl]ical am5dm5t ,! table ( sections
 = "p ,,vii ( sub*apt] ,b ( *apt] #a (  
su* ,code is am5d$ by /rik+ ! la/ item &
 ins]t+ ! foll[+3  ,sec4 #bbd4 ,em]g5cy 
sav+s acc\nts4 ,sec4 #bbe4 ,cross       
ref]5ce4  4  7f7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4