Bill > SB803

This bill establishes the First-time Homebuyer Savings Account Program in Pennsylvania, which allows first-time homebuyers to open special savings accounts to help them purchase their first single-family residence. Account holders can contribute up to $5,000 annually for individual tax filers or $10,000 for joint filers, with a maximum lifetime contribution of $150,000, and can receive tax deductions for these contributions for up to 10 years. The account can only be used to pay for eligible costs like down payments and closing costs for a home purchase in Pennsylvania, and the qualified beneficiary must be a first-time homebuyer who has never owned a single-family residence in any state. If funds are withdrawn for non-eligible purposes, the account holder will face tax penalties and a 10% additional penalty, though exceptions exist for cases of death, disability, or bankruptcy. The Treasury Department will administer the program, establish a dedicated fund, and have the authority to contract with investment managers and set up the necessary administrative structures. The goal of the program is to help make homeownership more accessible for first-time buyers by providing a tax-advantaged savings mechanism specifically designed for home purchase expenses.

Housing and Urban Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=803