IL HB1655

Creates the Illinois First-Time Homebuyer Savings Account Act allowing Illinois residents who have not owned a home in 3 years to open dedicated savings accounts for purchasing a single-family residence

Provides an annual state income tax credit of up to $2,000 for individual filers and $4,000 for married couples filing jointly for deposits and interest earned on these accounts

Sets a maximum lifetime credit of 10 times the taxpayer's first-year annual limit ($20,000 for individuals, $40,000 for married couples), with unused credits carried forward up to 5 years

Eligible expenses include down payments, closing costs, fees, taxes, and VA funding fees associated with purchasing a home in Illinois at least 90 days after opening the account

Beginning January 1, 2022, credit limits will be adjusted annually for inflation based on the Consumer Price Index, rounded to the nearest $100