General Assembly Bill No. 8002 establishes a framework for first-time homebuyer savings accounts in Connecticut, effective January 1, 2026. The bill defines key terms such as "account holder," "qualified beneficiary," and "eligible costs," which include down payments and closing costs for purchasing a primary residence. It allows individuals to create these accounts with financial institutions, mandates that funds be used exclusively for eligible costs, and outlines the responsibilities of account holders, including tax return submissions. The bill also introduces penalties for withdrawals not used for eligible costs and repeals certain existing legal language while inserting new definitions and requirements to facilitate this savings account program.

Additionally, the bill amends various tax provisions, including deductions for IRA distributions and contributions to first-time homebuyer savings accounts, while deleting outdated language and clarifying eligibility criteria. It also introduces new provisions for affordable housing development, requiring municipalities to create housing growth plans and establishing priority housing development zones. The bill emphasizes collaboration between municipalities and regional councils, mandates annual progress reports, and outlines funding mechanisms for housing projects. Overall, the legislation aims to enhance homeownership opportunities, modernize tax codes, and promote affordable housing development in Connecticut.

Statutes affected:
New Bill: 12-701, 8-2o, 8-2s, 8-2, 8-2c, 8-3, 3-129g, 21-83, 29-195, 8-68d, 8-37r