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. 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. Key definitions such as "certified first-time home buyer," "eligible expenses," and "qualified home purchase" are included, along with the agency's responsibilities for administering the program and establishing an application process for potential buyers.

The bill also 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) during the taxable year. Additionally, earnings on these accounts will be excluded from gross income until distributed, with specific provisions for qualified distributions related to eligible home purchase expenses. This initiative aims to provide financial incentives for first-time home buyers, encouraging them to save for their new homes while clarifying the tax implications of account withdrawals.