Establishes a first-time homebuyer savings account in Massachusetts to encourage homeownership.

The bill establishes a first-time homebuyer savings account in Massachusetts to help individuals purchase a single-family residence. Contributions to the account are tax-deductible, up to $5,000 for individual filers and $10,000 for joint filers. Earnings on the account are also tax-exempt, provided the funds remain in the account until used for eligible costs. Eligible costs include down payment and closing costs for a first-time home purchase. Withdrawals for other purposes are subject to income tax and a penalty. Financial institutions are not required to manage or report on these accounts.

Establishes a first-time homebuyer savings account in Massachusetts to encourage homeownership.

The bill establishes a first-time homebuyer savings account in Massachusetts to help individuals purchase a single-family residence. Contributions to the account are tax-deductible, up to $5,000 for individual filers and $10,000 for joint filers. Earnings on the account are also tax-exempt, provided the funds remain in the account until used for eligible costs. Eligible costs include down payment and closing costs for a first-time home purchase. Withdrawals for other purposes are subject to income tax and a penalty. Financial institutions are not required to manage or report on these accounts.