The proposed bill establishes a new chapter, CHAPTER 50, titled the "First Time Home Buyer Savings Program Act," within Title 34 of the General Laws. This act requires the general treasurer to create a first-time home buyer program in collaboration with the division of taxation and the state investment commission. The program allows individuals to save up to $50,000 in a designated savings account for their first home purchase, with contributions eligible for deduction from federal adjusted gross income. Additionally, participants can subtract up to $150,000 of interest and dividend income. Withdrawals for qualified home purchases are permitted, but non-qualified withdrawals will lead to the forfeiture of tax benefits and normal taxation.

The bill also amends Section 44-30-12 of the General Laws to incorporate these new provisions related to the first-time home buyer savings program, enhancing tax benefits for participants. Other modifications include allowing organ donors to subtract up to $10,000 for unreimbursed expenses and adjusting the treatment of taxable Social Security and retirement income. The bill outlines a phased increase in allowable modifications for pension and annuity income, starting at $15,000 in 2017 and reaching $50,000 by 2025, with adjustments for inflation. Overall, these changes aim to provide tax relief to specific groups while promoting home ownership and economic stability.