Bill > S751

This bill aims to promote savings for first-time homebuyers in Massachusetts. The key provisions are: 1. The Department of Housing and Community Development will establish a closing costs assistance program, providing grants of up to $2,500 to income-eligible first-time homebuyers to help cover closing costs and other fees associated with home purchases. 2. The Commissioner of Banks will establish a first-time homebuyer savings program, allowing individuals to open designated first-time homebuyer savings accounts with contributions of up to $4,000 that are not considered taxable income. 3. Balances of up to $5,000 in existing qualifying savings accounts can be credited when the account is designated as a first-time homebuyer account. 4. Qualifying distributions from first-time homebuyer accounts for eligible expenses will not be subject to state income taxes, while non-qualifying distributions will be taxable and subject to a penalty. 5. Contributions to first-time homebuyer accounts can be deducted from state income taxes up to $4,000 per year. 6. Taxpayers can claim a credit against state income taxes for taxes paid on contributions to a qualifying savings account converted to a first-time homebuyer account prior to 2017.

Housing and Urban Affairs

https://malegislature.gov/Bills/190/S751