Bill > HB225

This bill establishes a first-time home buyer savings account program in Pennsylvania that allows individuals to open special savings accounts to help purchase their first home with tax benefits. Account holders can contribute up to $5,000 annually for individual filers or $10,000 for joint filers, with a lifetime maximum contribution of $150,000, and can claim tax deductions and tax-free earnings for up to 10 years. To qualify as a "first-time home buyer," an individual must not have owned a single-family residence in the past three years and must be a Pennsylvania resident. The accounts can only be used to pay for down payments and closing costs for purchasing a single-family residence within the state, and if funds are withdrawn for non-eligible purposes, the account holder will be required to pay income tax on the withdrawal plus a 10% penalty. Financial institutions are not required to track account details or verify fund usage, and the Department of Revenue will be responsible for creating necessary forms and regulations. The program aims to help make homeownership more accessible by providing tax incentives and a dedicated savings mechanism for first-time home buyers in Pennsylvania.

Housing and Urban Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=225