Pennsylvania SB803 establishes first-time homebuyer savings accounts to help with home purchases.

Pennsylvania SB803 creates the First-time Homebuyer Savings Account Program to assist first-time homebuyers. The bill establishes the First-time Homebuyer Savings Account Fund within the Treasury Department. Account holders can contribute up to $5,000 annually, with a maximum account balance of $150,000. Contributions are tax-deductible, and earnings are tax-free if used for eligible costs. Withdrawals for non-eligible costs incur a 10% penalty. The Treasury Department administers the program, utilizing existing administrative structures. The act takes effect in 180 days.

Pennsylvania SB803 establishes first-time homebuyer savings accounts to help with home purchases.

Pennsylvania SB803 creates the First-time Homebuyer Savings Account Program to assist first-time homebuyers. The bill establishes the First-time Homebuyer Savings Account Fund within the Treasury Department. Account holders can contribute up to $5,000 annually, with a maximum account balance of $150,000. Contributions are tax-deductible, and earnings are tax-free if used for eligible costs. Withdrawals for non-eligible costs incur a 10% penalty. The Treasury Department administers the program, utilizing existing administrative structures. The act takes effect in 180 days.