Bill > H2727

This bill establishes a first-time homebuyer savings account program in Massachusetts. The key provisions include: - Allowing individuals to open an account with a financial institution and designate it as a first-time homebuyer savings account to be used for eligible costs, such as down payments and closing costs, for the purchase of a single-family residence in Massachusetts. - Permitting individuals to claim a state income tax deduction for contributions to the account, up to $5,000 for individual filers or $10,000 for joint filers, as well as for earnings on the account, subject to a 15-year, $50,000 limit. - Requiring account holders to designate a first-time homebuyer as the qualified beneficiary of the account and allowing them to change the beneficiary. - Placing restrictions on the use of account funds, such as prohibiting withdrawals for non-eligible expenses, and imposing penalties for unauthorized withdrawals. - Providing financial institutions with certain protections and limiting their responsibilities related to the administration and reporting of these accounts. The goal of the bill is to encourage homeownership by helping first-time homebuyers save for the costs associated with purchasing a home in Massachusetts.

Budget and Finance

https://malegislature.gov/Bills/193/H2727