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 of 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, detailing modifications to federal adjusted gross income for taxpayers participating in the first-time home buyer savings program. This includes the ability to subtract contributions to the savings account and interest and dividends from federal adjusted gross income. The act aims to support first-time home buyers and will take effect upon passage.

Statutes affected:
415: 44-30-12