The proposed bill introduces the "First Time Home Buyer Savings Account Act" to the Code of West Virginia, establishing a framework for first-time home buyers to save for down payments and closing costs. It defines key terms such as "account holder," "eligible costs," and "financial institution," and allows individuals to create savings accounts specifically for purchasing single-family residences. The bill outlines the tax benefits associated with these accounts, including subtractions from federal adjusted gross income for contributions made, with limits based on income levels. It also specifies penalties for withdrawing funds for non-eligible expenses and mandates that financial institutions provide account holders with annual information certificates.

Additionally, the bill requires the Tax Commissioner to propose rules for the implementation and administration of the act, which will apply to tax years beginning on or after January 1, 2025, and before January 1, 2031. Contributions made to accounts established before January 1, 2029, will continue to be exempt from taxation under the terms specified in the act. Overall, this legislation aims to incentivize savings for first-time home buyers in West Virginia, making home ownership more accessible in the current economic climate.

Statutes affected:
Introduced Version: 31-18G-1, 31-18G-2, 31-18G-3, 31-18G-4, 31-18G-5, 31-18G-6, 31-18G-7, 31-18G-8, 31-18G-9, 31-18G-10