Bill > S0445

This bill establishes a First-Time Homebuyer Savings Account program in Rhode Island that allows residents who have not owned a home in the past three years to open a specialized savings account with Rhode Island Housing to save money for purchasing their first home. Account holders can contribute cash and marketable securities to the account with no annual contribution limits, and can receive significant tax benefits, including annual deductions of up to $15,000 for individuals or $30,000 for joint filers, and tax-free earnings on the account. The account can be maintained for up to ten years and can accumulate a maximum of $150,000, with funds designated specifically for down payments and closing costs for purchasing a home in Rhode Island. If funds are withdrawn for purposes other than eligible home-buying costs, the account holder will face tax penalties of 10% on the withdrawn amount. The program allows for flexibility in designating a qualified beneficiary, permits joint account ownership, and even allows for potential out-of-state home purchases if the account holder relocates, though the primary intent is to assist Rhode Island residents in becoming homeowners within the state.

Budget and Finance

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