The proposed bill establishes the New Jersey First-Time Home Buyer Savings Account Program, which aims 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 facilitate these accounts. The bill defines key terms such as "certified first-time home buyer," "eligible expenses," and "qualified home purchase," while also outlining the requirements for participation, including income limits and home ownership history.

To incentivize contributions to these savings accounts, the bill introduces a tax credit for certified first-time home buyers, allowing them to claim a credit against their New Jersey gross income tax equal to five percent of contributions, capped at $15,000 (or $7,500 for married individuals filing separately). Furthermore, earnings on these accounts will be excluded from gross income until distributed, with certain distributions exempt from taxation. The program is designed to take effect immediately, with specific provisions becoming operative after a designated period following enactment.