Bill > S907

This bill aims to promote savings for first-time homebuyers in Massachusetts. The key provisions are: 1. It establishes a closing costs assistance program that provides grants of up to $2,500 to income-eligible first-time homebuyers to help cover closing costs and fees associated with purchasing a home. 2. It creates a first-time homebuying program administered by financial institutions, where individuals can establish designated "first-time home-buying accounts" that allow for contributions of up to $4,000 to be deducted from their taxable income. Balances of up to $5,000 in these accounts prior to designation will also be credited. 3. Qualifying distributions from these first-time home-buying accounts for eligible expenses will not be considered taxable income, while non-qualifying distributions may be subject to a penalty. 4. Taxpayers will be allowed a credit against their state income taxes for taxes paid on contributions of up to $5,000 into these accounts prior to 2021. The overall goal of the bill is to make it easier for first-time homebuyers in Massachusetts to save for and afford the costs associated with purchasing their first home.

Housing and Urban Affairs

https://malegislature.gov/Bills/192/S907