Bill > H3192

This bill establishes a first-time homebuyer savings account program in Massachusetts that allows individuals to create special savings accounts to help purchase their first single-family residence. Under the program, account holders can contribute cash or marketable securities to these accounts and receive state income tax benefits, including a tax deduction of up to $5,000 for individual filers or $10,000 for joint filers annually. To qualify as a "first-time homebuyer," an individual must not have owned a single-family residence in the past three years and must reside in Massachusetts. The accounts can be held for up to 15 years, with a maximum total deduction of $50,000, and can only be used for eligible costs like down payments and closing costs for purchasing a single-family residence in Massachusetts. If funds are withdrawn for purposes other than eligible home-buying costs, the account holder must include those funds in their taxable income and pay a penalty, with exceptions for death, disability, bankruptcy, or transferring the account to another financial institution. The bill provides detailed guidelines for opening, managing, and using these accounts, and requires account holders to report account details to the Massachusetts Department of Revenue. Financial institutions are not responsible for tracking account usage or ensuring compliance with the program's requirements.

Budget and Finance

https://malegislature.gov/Bills/194/H3192