The bill introduces CHAPTER 50, the "First Time Home Buyer Savings Program Act," to Title 34 of the General Laws, establishing a program for first-time home buyers. The program, created by the general treasurer in conjunction with the division of taxation and the state investment commission, allows participants to save money specifically for the purchase of their first home. Participants may contribute up to $50,000 to a designated savings account, which can be deducted from their federal adjusted gross income. Additionally, participants can subtract up to $150,000 of interest and dividend income from their federal adjusted gross income.

Withdrawals from the savings account for qualified home purchases are permitted, while withdrawals for non-qualified purposes will result in the forfeiture of tax benefits, and the participant will be taxed at the normal rate.

The bill also amends Section 44-30-12 of the General Laws to include modifications to federal adjusted gross income for residents, specifically addressing the contributions and withdrawals related to the new savings program. The act will take effect upon passage.

Statutes affected:
415: 44-30-12