Bill > HB1178

This bill allows for a subtraction modification under the Maryland income tax for contributions to a first-time homebuyer savings account and the earnings on that account. Eligible individuals, known as "first-time homebuyers," can contribute up to $5,000 per year to the account and claim a subtraction modification for those contributions, as well as the earnings on the account, for up to 10 years or a total of $50,000 in earnings. The account must be used for eligible costs, such as down payments and closing costs, related to the purchase of a home in Maryland within 15 years of the account's establishment. The bill also outlines requirements and limitations for transferring money to and from the account, as well as penalties for withdrawing funds for non-eligible purposes. The bill applies to all taxable years beginning after December 31, 2020.

Budget and Finance

http://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1178?ys=2021RS