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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | March 25, 2024 11:25 AM |
|---|---|
| From: | Representative Tarik Khan and Rep. Jamie L. Flick, Rep. Mary Jo Daley, Rep. Jason Ortitay, Rep. Jose Giral, Rep. Jim Prokopiak |
| To: | All House members |
| Subject: | Small Business Catastrophe Savings Account |
| Flood, ice storms, tornado or other natural disasters can be devastating to local businesses. Often, insurance does not cover all the damages to the business, and as a result, the business can face financial difficulties and tough decisions. We feel there are changes we can make to help local businesses prepare for these difficult times. Our legislation would allow small businesses to deposit pre-tax dollars into a specially designated savings account. The business would be able to deduct this amount from their taxes, however, they would only be permitted to use these funds to help recover from a natural disaster when their insurance claim does not cover the full cost of rebuilding. If the small business needs the money in the future for another unrelated reason, the money could be withdrawn, but the business would need to remit all taxes owed. By creating Business Catastrophe Savings Accounts, small businesses can have an incentive to put money aside to prepare for catastrophes and be prepared when a potential business closing event occurs. This way, we can keep these institutions running and allow them to recover from disaster events more easily, so they can continue to be an integral part of our communities. We hope you will join us in easing the burden on our small businesses by establishing the Small Business Catastrophe Savings Account Act. |
Introduced as HB2192