The bill establishes a new chapter, CHAPTER 50, titled the "First Time Home Buyer Savings Program Act," within Title 34 of the General Laws. It mandates the creation of a first-time home buyer program by the general treasurer, in collaboration with the division of taxation and the state investment commission. This program allows individuals to save specifically for their first home, with contributions up to $50,000 eligible for subtraction from federal adjusted gross income. Additionally, participants can subtract up to $150,000 of interest and dividend income from their federal adjusted gross income. Withdrawals for qualified home purchases are permitted, while non-qualified withdrawals will lead to the forfeiture of tax modifications and taxation at the normal rate.

The bill also amends Section 44-30-12 of the General Laws concerning personal income tax for resident individuals. It introduces modifications to state tax liabilities, allowing taxpayers to subtract from federal adjusted gross income an amount up to $50,000 contributed to the first-time home buyer savings account and an amount up to $150,000 of interest and dividends included in federal adjusted gross income. The bill takes effect upon passage.

Statutes affected:
415: 44-30-12