This bill amends section 77-2716 of the Revised Statutes Cumulative Supplement, 2024, to introduce the First-Time Homebuyers Savings Account Act, which aims to provide tax benefits for first-time homebuyers in Nebraska. The legislation allows individuals to create savings accounts specifically for covering eligible home costs associated with purchasing a single-family residence. Starting January 1, 2026, contributions to these accounts can be subtracted from federal adjusted gross income, with limits set at $4,000 for married couples filing jointly and $2,000 for other account holders. Additionally, any interest earned on these accounts will also be excluded from federal adjusted gross income.

The bill outlines requirements for account holders, including the submission of an annual report, IRS Form 1099, and a transaction report upon withdrawal of funds, which must accompany their Nebraska income tax return. It also specifies that withdrawals for non-eligible home costs will be added back to federal adjusted gross income and subject to penalties. The legislation mandates the department to adopt rules and regulations for implementing the act, including necessary forms for account management. Overall, the bill seeks to enhance homeownership opportunities in Nebraska through targeted tax incentives and streamlined savings account provisions.

Statutes affected:
Introduced: 77-2716