Bill > HB1607

This bill enacts the "Georgia First-Time Homebuyer's Savings Account Act" to encourage residents to save for their first home by creating dedicated savings accounts that offer tax incentives. An "account holder" can establish a "first-time homebuyer savings account" with a "financial institution" (like a bank or credit union) and designate a "beneficiary," who is a "first-time homebuyer" – defined as someone who hasn't owned a home in the three years prior to purchasing one. Contributions to these accounts, which can include cash and marketable securities, are tax-deductible up to certain annual limits ($6,000 for individuals, $12,000 for joint filers) and lifetime limits ($60,000 for individuals, $120,000 for joint filers per beneficiary), with earnings on the funds also being tax-exempt if used for "qualified first-time home expenses" such as down payments and closing costs. Financial institutions are largely exempt from liability for tracking account usage or reporting to the Department of Revenue beyond standard requirements. Withdrawals for purposes other than qualified home expenses ("unqualified withdrawals") will result in the recapture of previously claimed deductions, a 10% penalty, and taxation of associated earnings, though exceptions exist for death or disability of the beneficiary or military relocation. The Department of Revenue will create necessary forms and can penalize fraudulent activity. This Act takes effect on January 1, 2027.