Bill > HB818

This bill establishes the First-time Homebuyer Savings Account Program in Pennsylvania, designed to help first-time homebuyers save money for purchasing their first home. The program allows individuals to open a special savings account with tax benefits, where account holders can contribute up to $5,000 annually for individual filers or $10,000 for joint filers, with a maximum total contribution limit of $150,000. Contributions are tax-deductible, and earnings on the account are tax-exempt, but these benefits are limited to 10 years and a total principal deduction of $50,000. Account holders must designate a qualified beneficiary (a first-time homebuyer who has never owned a single-family residence in Pennsylvania or another state) and can only use the funds for specific eligible costs like down payments and closing costs for a home purchase within the state. If funds are withdrawn for non-eligible purposes, the account holder must pay taxes on the withdrawal and potentially a 10% penalty. The Treasury Department will administer the program, manage the First-time Homebuyer Savings Account Fund, and have broad powers to establish and oversee the accounts. The program aims to make homeownership more accessible by providing a tax-advantaged savings mechanism specifically for first-time homebuyers.

Budget and Finance, Housing and Urban Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=818