CT SB00182

Establishes first-time homebuyer savings accounts effective January 1, 2023, allowing individuals to deposit unlimited cash funds to pay down payments and closing costs on Connecticut single-family residences.

Permits one or more individuals to establish accounts with financial institutions; two individuals may jointly establish an account if filing joint tax returns; account holders must designate a qualified beneficiary by April 15 following account establishment.

Provides Connecticut income tax deduction for eligible account holders with federal adjusted gross income under $100,000 (unmarried/head of household) or $200,000 (married filing jointly), allowing deductions of up to $2,500 annually (unmarried) or $5,000 (married filing jointly) for contributions made in 2023-2024 and ongoing years.

Imposes 10% civil penalty on withdrawals not used for eligible costs, unless withdrawn due to account holder death/disability, deposited into another first-time homebuyer account, or filed for bankruptcy protection.

Authorizes Commissioner of Revenue Services to prepare required forms and adopt implementing regulations; directs Treasurer to recommend by July 1, 2023, whether marketable securities should be permitted in these accounts.