The bill introduces CHAPTER 51, the "First-Time Home Buyer Savings Program Act," to Title 34 of the General Laws, establishing a program for first-time home buyers. This program, created by the general treasurer in collaboration with the division of taxation and the state investment commission, allows individuals to save specifically for their first home through designated savings accounts. Participants can contribute up to $50,000, which is deductible from their federal adjusted gross income, and can also 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 result in the forfeiture of tax benefits and normal taxation.

Additionally, the bill amends Section 44-30-12 of the General Laws concerning personal income tax, allowing modifications to federal adjusted gross income based on contributions to the new savings program. The act aims to promote home ownership among first-time buyers, with the provisions set to take effect upon passage.

Statutes affected:
2442: 44-30-12