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

Furthermore, the bill requires the Tax Commissioner to propose rules for the implementation and administration of the new savings account program. It stipulates that the tax exemptions apply to tax years beginning on or after January 1, 2025, and before January 1, 2031, while also ensuring that contributions made before January 1, 2029, remain exempt from taxation under the terms outlined in the act. Overall, this legislation seeks to incentivize home ownership among West Virginians by facilitating savings for first-time buyers.

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