The proposed First-Time Home Buyer Savings Account Act aims to promote first-time home ownership in Nebraska by allowing individuals to reduce their taxable income through contributions to designated savings accounts. Starting January 1, 2027, individuals can open these accounts with financial institutions to save for down payments and closing costs associated with purchasing or constructing a primary residence. The bill defines key terms such as "account holder," "eligible expenses," and "first-time home buyer," and establishes guidelines for account management, including contribution limits and documentation responsibilities.

Additionally, the bill amends section 77-2716 of the Revised Statutes Supplement, 2025, to include tax adjustments related to the savings accounts, allowing individuals to reduce their federal adjusted gross income by contributions made to these accounts, with limits of $5,000 for individuals and $10,000 for married couples filing jointly. It also allows for the exclusion of interest and other income earned on these accounts during the taxable year, with provisions for recapturing deductions in future tax years if certain conditions are met. The bill repeals the original section 77-2716 to accommodate these changes, ensuring that the state can recapture benefits if the funds are not used as intended while providing financial incentives for first-time home buyers.

Statutes affected:
Introduced: 77-2716