The proposed bill amends section 77-2716 of the Revised Statutes Cumulative Supplement, 2024, to establish the First-Time Homebuyers Savings Account Act, which aims to incentivize savings for home purchases through income tax adjustments. The bill allows for specific subtractions from federal adjusted gross income, including contributions to first-time homebuyer savings accounts, and introduces various modifications to existing tax regulations, such as adjustments for military retirement benefits and medical debt relief. Notably, it repeals the original section of the law, indicating a significant overhaul of the tax code related to these savings accounts and other specified income adjustments.

Additionally, the bill introduces new requirements for account holders and financial institutions regarding the management of first-time homebuyer savings accounts. Account holders must submit annual reports and transaction reports upon withdrawal, while financial institutions are not required to verify the purpose of withdrawals or label accounts as first-time homebuyer savings accounts. The bill mandates the department to adopt rules and regulations for implementation, with the act set to become operative on January 1, 2026.

Statutes affected:
Introduced: 77-2716