Bill > LB151

This bill introduces the First-Time Homebuyers Savings Account Act, which creates a new tax-advantaged savings mechanism to help first-time homebuyers in Nebraska save for home purchases. The bill allows individuals to open special savings accounts where contributions up to $2,000 annually for single filers (or $4,000 for married joint filers) can be subtracted from their state income taxes. These accounts can only be used for specific home-related expenses like down payments and closing costs, and are limited to a lifetime maximum of $20,000 for single filers or $40,000 for married joint filers. To qualify, the designated beneficiary must be a first-time homebuyer who has not owned a home in the past three years, and the home must be purchased in Nebraska at least 90 days after the account is opened. If funds are withdrawn for purposes other than eligible home costs, the account holder will face income tax additions and a 10% penalty. The bill provides detailed rules about account establishment, beneficiary designation, and reporting requirements, with the program set to become operative on January 1, 2026. Financial institutions are explicitly not required to verify account purposes or track fund usage. The Department of Revenue will be responsible for creating the necessary forms and regulations to implement the program.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59387