AR HB1892

Establishes the Arkansas Dream Down Payment Program administered by the State Treasurer to help first-time homebuyers save up to $20,000 for down payments on principal residences in Arkansas.

Allows eligible individuals to make tax-deductible cash contributions to qualified down payment program accounts for designated beneficiaries, with contributions capped at $20,000 per account and not exceeding $20,000 in account balance.

Provides tax exemptions for contributions, investment earnings, and qualified distributions used for down payment expenses and closing costs on Arkansas home purchases.

Limits designated beneficiaries to one account each, restricts investment direction changes to twice per year, and automatically transfers funds reaching $20,000 to U.S. Treasury securities.

Becomes effective January 1, 2023, with the State Treasurer required to adopt implementing rules by that date and report program metrics to legislative committees regarding participation demographics and homeownership impact.