HB171 Summary

• Extends the first-time and second chance home buyer savings account program from 5 years to 10 years, with new account creation allowed through December 31, 2028.

• Increases aggregate contribution limits from $25,000 to $25,000 for individual accounts and $50,000 for joint accounts during the 10-year period.

• Requires account holders to submit detailed transaction information and Form 1099 to the Department of Revenue annually, and submit documentation of eligible costs upon fund withdrawal or face penalties.

• Maintains tax deduction limits of $5,000 per year for individual filers and $10,000 for joint filers, with earnings excluded from taxable income.

• Requires the Department of Revenue to report annually to the Legislative Services Agency on the number of deductions claimed, deposits deducted, taxpayers submitting accounts, and those who failed to expend funds or were penalized.