Bill > S1787

This bill establishes two new types of savings accounts in Massachusetts: first-time homebuyer savings accounts and rental savings accounts. For the first-time homebuyer savings accounts, individuals can open accounts and designate a first-time homebuyer as the qualified beneficiary. Contributions to these accounts up to $25,000 per year for individual filers or $50,000 for joint filers, as well as any earnings, can be deducted from the account holder's taxable income, with a 15-year limit and $250,000 total contribution cap. The funds must be used for eligible costs, such as a down payment and closing costs, when the qualified beneficiary purchases a single-family residence in Massachusetts. Similarly, the rental savings accounts allow individuals to open accounts and designate a qualified beneficiary who is seeking to rent a permanent residence in Massachusetts. Contributions up to $15,000 per year for individual filers or $30,000 for joint filers, as well as any earnings, can be deducted from the account holder's taxable income, with a 15-year limit and $50,000 total contribution cap. The funds must be used for eligible rental costs, such as first and last month's rent and security deposits.

Budget and Finance

https://malegislature.gov/Bills/193/S1787