The proposed 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. The program will be managed by the New Jersey Housing and Mortgage Finance Agency, which will certify first-time home buyers and coordinate with financial institutions to facilitate 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.

The bill also introduces tax benefits under the New Jersey Gross Income Tax Act, offering a tax credit of five percent on contributions made to these savings accounts, with a maximum of $15,000 (or $7,500 for married individuals filing separately) during the taxable year. Earnings in these accounts will be excluded from gross income until distributed, with specific provisions for qualified distributions related to eligible home purchase expenses. The bill aims to provide financial incentives for first-time home buyers while ensuring clarity regarding tax implications upon withdrawal.