HB3934 - First-Time Home Buyer Savings Program Act

• Establishes the First-Time Home Buyer Savings Program allowing individuals to open designated savings accounts with financial institutions from January 1, 2023 through December 31, 2027 to pay down payments and closing costs for single-family residence purchases in Illinois.

• Sets a maximum account balance limit of $50,000, with contributions and earned interest exempt from Illinois state income taxation for qualified withdrawals used toward eligible home purchase costs.

• Requires account holders to submit account statements, Form 1099s, and settlement statements to the Office of the State Treasurer with their tax returns to claim deductions under the Illinois Income Tax Act.

• Imposes a 10% penalty on non-qualified withdrawals from the account, with exceptions for death, disability, bankruptcy, hardship withdrawals, and military service members transferred out of state.

• Places responsibility for fund use on account holders; financial institutions have no obligation to track account designations, monitor withdrawal uses, or report to the State Treasurer beyond existing legal requirements.