IN HB1403

Establishes the First Time Home Buyer Savings Program administered by the Indiana Housing and Community Development Authority, allowing Indiana residents who have not owned a home in 3 years to open dedicated savings accounts at financial institutions for down payments and closing costs on single family residences

Creates a state adjusted gross income tax credit equal to 20% of annual contributions to the account, capped at $5,000 per taxable year, with no carryback, carryover, or refund of unused credits

Exempts all money in the account, including earnings and interest, from Indiana state taxation, and exempts withdrawals used for eligible home purchase costs from adjusted gross income tax

Requires repayment of previously claimed tax credits if funds are withdrawn for purposes other than down payment or allowable closing costs

Effective July 1, 2026 for the program establishment and January 1, 2027 for the tax credit provisions, which apply to taxable years beginning after December 31, 2026