The bill establishes the "First Time Home Buyer Savings Program Act" under CHAPTER 51, aimed at assisting first-time home buyers in saving for their home purchases. The program will be managed by the general treasurer in conjunction with the division of taxation and the state investment commission. It allows participants to contribute up to $50,000 to a designated savings account, which can be deducted from their federal adjusted gross income. Additionally, participants may subtract up to $150,000 of interest and dividend income from their federal adjusted gross income. The funds in the savings account are restricted for use in purchasing a first home, and there are penalties for non-qualified withdrawals that result in the forfeiture of tax benefits.

The bill also amends Section 44-30-12 of the General Laws to clarify the definition of Rhode Island income for resident individuals and outlines modifications to federal adjusted gross income, specifically allowing for the subtraction of contributions to the first-time home buyer savings account and interest and dividends included in federal adjusted gross income. The act aims to provide tax relief for first-time home buyers and will take effect upon passage.

Statutes affected:
7798: 44-30-12