This bill amends section 77-2716 of the Revised Statutes Cumulative Supplement, 2024, to establish the First-Time Homebuyers Savings Account Act, which aims to provide income tax benefits for individuals saving for their first home. Key provisions include allowing individuals to open interest-bearing savings accounts specifically for eligible home costs, with contributions to these accounts being subtracted from federal adjusted gross income starting January 1, 2026. The contribution limits are set at $4,000 for married couples filing jointly and $2,000 for other account holders, with any interest earned also eligible for subtraction. The bill outlines eligibility criteria for account holders and beneficiaries, as well as the management process for these accounts.

Additionally, the bill mandates that account holders submit an annual report, IRS Form 1099, and a transaction report upon fund withdrawal, which must accompany their Nebraska income tax return. It clarifies that financial institutions are not required to label these accounts or verify the purpose of withdrawals. The legislation also empowers the department to create rules and regulations for implementing the act, which will take effect on January 1, 2026, and repeals the original section 77-2716, indicating a significant restructuring of the tax code related to first-time homebuyer savings accounts.

Statutes affected:
Introduced: 77-2716