HB177 Summary

• Extends the ability for first-time and second chance home buyers to create savings accounts from five years to ten years, with account terms expiring December 31, 2028.

• Increases the deposit period from five to ten years while maintaining tax deduction limits of $5,000 for individual filers and $10,000 for joint filers, with aggregate limits of $25,000 and $50,000 respectively.

• Requires account holders to submit detailed transaction information and Form 1099s to the Department of Revenue annually with their tax returns, and to provide documentation of eligible home purchase costs upon withdrawal.

• Imposes automatic denial of deductions and exclusions for failure to submit required documentation, and subjects entire account funds to penalties if withdrawal documentation is not provided.

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