Pennsylvania HB225 establishes first-time home buyer savings accounts to help first-time homebuyers save for down payments and closing costs.
Pennsylvania HB225 creates first-time home buyer savings accounts to assist first-time homebuyers in saving for down payments and closing costs. Contributions to these accounts are deductible from taxable income, up to $5,000 for individual filers and $10,000 for joint filers. Earnings on the accounts are also excluded from taxable income. Funds can only be used for eligible costs related to the purchase of a single-family residence in Pennsylvania. Withdrawals for other purposes incur a 10% penalty, except in cases of death, disability, or bankruptcy.
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