HB5503 Summary: Illinois First-Time Homebuyer Savings Account Act

• Allows individuals to open first-time homebuyer savings accounts beginning January 1, 2018, to pay or reimburse eligible home costs for single-family residence purchases in Illinois.

• Provides annual tax credits of up to $2,000 for individual filers and $4,000 for married joint filers on deposits into these accounts, with a maximum lifetime credit of 10 times the annual limit.

• Requires account holders to designate a first-time homebuyer (one who has not owned residential property for 3 years prior) as beneficiary and submit annual reports to the Department of Revenue with transaction details and IRS Form 1099 information.

• Exempts financial institutions from responsibility to verify account compliance, track fund usage, or report to government agencies regarding these accounts.

• Beginning January 1, 2020, adjusts the maximum tax credits annually for inflation using the Consumer Price Index and rounds adjustments to the nearest $100.