The bill introduces the "First Time Home Buyer Savings Program Act" in Rhode Island, which allows individuals to save for their first home purchase through a dedicated savings account. The program is managed by the general treasurer, division of taxation, and the state investment commission. Participants can contribute up to $50,000, which is deductible from their federal adjusted gross income, and up to $150,000 of interest and dividend income. Withdrawals from the account are tax-free when used for purchasing a first home, but withdrawing for other purposes results in the loss of tax benefits and normal taxation. The bill amends Section 44-30-12 of the General Laws to include these provisions.

Additionally, the bill makes several amendments to the personal income tax code, including allowing deductions for interest on certain indebtedness, contributions to the state's tuition savings program, and unreimbursed expenses for organ donation. It also adjusts the treatment of taxable Social Security and retirement income, with increased exclusion amounts and annual inflation adjustments. The bill sets forth a new modification for participants in the home buyer savings program, allowing significant deductions for contributions and earned interest/dividends. It also includes provisions for military service pension benefits deductions and outlines the Rhode Island fiduciary adjustment. The act becomes effective upon passage.

Statutes affected:
7673: 44-30-12