Bill > A05098

This bill establishes the New York State First Home Savings Program, a state-sponsored initiative designed to help first-time home buyers save money for purchasing their first home. The program allows individuals to open specialized savings accounts with tax benefits, where contributors can deduct up to $5,000 for individuals or $10,000 for married couples filing jointly from their state taxes. To qualify, account owners must be first-time home buyers who have never owned a principal residence, and they must intend to use the purchased property as their primary residence for at least two years. The accounts have specific rules, including a $100,000 contribution limit and penalties for non-qualified withdrawals, such as being taxed at the account owner's federal tax rate plus an additional 10% state penalty. Financial organizations can serve as account depositories, and the state comptroller will oversee the program, establishing guidelines, selecting program managers, and ensuring compliance. Importantly, the program is targeted at individuals with adjusted gross incomes up to 250% of the area median income, making it a tool to help middle-income New Yorkers achieve homeownership. The program will take effect 180 days after becoming law and will apply to tax years beginning after its enactment.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A5098