The proposed bill aims to establish the "First Time Home Buyer Savings Account Act" in West Virginia, which will facilitate the creation of savings accounts specifically for first-time home buyers. The bill outlines definitions for key terms, such as "account holder," "eligible costs," and "financial institution," and allows individuals to create these accounts to save for down payments and closing costs associated with purchasing a single-family residence. It also stipulates that contributions to these accounts can be subtracted from federal adjusted gross income, with specific limits based on the taxpayer's income level. Additionally, the bill includes provisions for penalties if funds are withdrawn for purposes other than eligible costs.

Furthermore, the bill mandates that financial institutions provide account holders with an annual information certificate detailing account activity, and it requires the Tax Commissioner to propose rules for the implementation of the act. The tax exemptions and benefits outlined in the bill will apply to tax years beginning on or after January 1, 2026, and before January 1, 2032, with certain provisions allowing for continued tax exemption for contributions made before January 1, 2030. Overall, the legislation seeks to incentivize savings for first-time home buyers in West Virginia, addressing the challenges they face in affording home ownership.

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