The bill establishes the New Jersey First-Time Home Buyer Savings Account Program, designed to promote first-time home ownership by allowing individuals to create dedicated savings accounts. Managed by the New Jersey Housing and Mortgage Finance Agency, the program will certify first-time home buyers and coordinate with financial institutions to offer these accounts. Key terms such as "certified first-time home buyer," "eligible expenses," and "qualified home purchase" are defined, and the agency's responsibilities include creating an application process for potential home buyers.

Additionally, the bill introduces tax benefits under the New Jersey Gross Income Tax Act, allowing certified first-time home buyers to claim a tax credit of five percent on contributions made to their savings accounts, capped at $15,000 (or $7,500 for married individuals filing separately). Earnings from these accounts will not be included in gross income until distributed, with specific provisions for qualified distributions related to eligible home purchase expenses. The act is set to take effect immediately, with certain sections becoming operative after a specified period, thereby incentivizing savings for first-time home purchases while providing tax advantages to eligible taxpayers.