Bill > HB06876

This bill establishes a first-time homebuyer savings account program in Connecticut designed to help individuals save money for purchasing their first home. The bill allows individuals to open special savings accounts at financial institutions specifically for saving toward home-related expenses like down payments and closing costs. Account holders can contribute unlimited funds to these accounts, and anyone, including employers, can contribute to an individual's account. Participants who are first-time homebuyers (defined as those who have not previously owned a one-to-four family residence) can receive tax benefits, including a state income tax deduction for contributions up to $2,500 for individuals and $5,000 for married couples filing jointly for tax years starting in 2027. Employers who contribute to these accounts can also receive a tax credit equal to 10% of their contributions, with a maximum credit of $2,500 per account holder. The program includes strict rules about account usage, with penalties for withdrawing funds for non-eligible purposes. To qualify, account holders must designate a qualified beneficiary who will use the funds to purchase a primary residence in Connecticut, and they must submit detailed documentation to the state's Department of Revenue Services. The program is set to take effect on January 1, 2026, and aims to make homeownership more accessible by providing tax incentives for saving toward home purchases.

Budget and Finance, Business and Industry

Banking Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB06876&which_year=2025