Bill
Bill > S1756
NJ S1756
NJ S1756Establishes New Jersey First-Time Home Buyer Savings Account Program; provides gross income tax benefits for certain contributions to and earnings on assets maintained in accounts established under program.
summary
Introduced
01/13/2026
01/13/2026
In Committee
02/05/2026
02/05/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill establishes the New Jersey First-Time Home Buyer Savings Account Program for the purpose of encouraging individuals to accumulate the level of savings necessary for the purchase of their first homes within this State. The bill places the program under the direction and control of the New Jersey Housing and Mortgage Finance Agency (agency) and provides for the program to be administered by the executive director and staff of the agency. To effectuate the program, the bill directs the agency to perform certain tasks enumerated in the bill. The bill provides New Jersey gross income tax benefits for certain contributions made to, and earnings on assets maintained in, a first-time home buyer savings account. Under the bill, a taxpayer who is a certified first-time home buyer is allowed a credit against the gross income tax in an amount equal to five percent of up to $15,000 of contributions (or up to $7,500 of contributions if married filing separately) that are made during the taxable year to one first-time home buyer savings account. In addition, the bill excludes from gross income the earnings on a first-time home buyer savings account. The bill provides that the earnings on these accounts are to be treated as tax-free until the earnings are distributed from the account, at which time the earnings and the contributions allowed as a tax credit are to be included in the gross income of the distributee unless the withdrawal or distribution is a qualified distribution pursuant to the bill.
AI Summary
This bill establishes the New Jersey First-Time Home Buyer Savings Account Program, managed by the New Jersey Housing and Mortgage Finance Agency (NJHMFA), to help individuals save for their first homes in the state. It offers New Jersey gross income tax benefits, including a tax credit of five percent on contributions up to $15,000 (or $7,500 if married filing separately) made to a designated savings account, and excludes earnings on these accounts from gross income. These tax benefits are contingent on the funds being used for a "qualified home purchase," which includes buying or building a primary residence in New Jersey, and for "eligible expenses" like down payments and closing costs. If funds are withdrawn for non-qualified purposes, the earnings and any previously credited contributions become taxable, and a 10% penalty may apply, though exceptions exist for death, disability, or bankruptcy. To participate, individuals must be "certified first-time home buyers," meaning they meet specific criteria set by the NJHMFA, such as having a limited income and no prior homeownership in recent years, and they must complete a homebuyer education course. The bill also sets limits on account contributions and total asset value, and requires annual reporting to the NJHMFA.
Committee Categories
Budget and Finance, Housing and Urban Affairs
Sponsors (4)
Last Action
Referred to Senate Budget and Appropriations Committee (on 02/05/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1756 |
| Analysis - Statement SCU 2/5/26 | https://pub.njleg.gov/Bills/2026/S2000/1756_S1.PDF |
| Analysis - Technical Review Of Prefiled Bill | https://pub.njleg.gov/Bills/2026/S2000/1756_T1.PDF |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1756_I1.HTM |
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