MA H3041

Creates a new First-Time Homebuyer Savings Account program beginning January 1, 2026, allowing Massachusetts residents to save for down payments and closing costs on single-family homes with state tax benefits

Annual contributions up to $10,000 (individual filers) or $20,000 (joint filers) are deductible from Massachusetts taxable income, and all account earnings are tax-exempt

Maximum aggregate deduction of $100,000 in principal and earnings over a 15-year period; unused funds after 15 years become taxable income

First-time homebuyer defined as someone who has not owned a single-family residence in the prior 3 years; eligible properties include single-family homes, condos, co-ops, manufactured homes, and mobile homes

Withdrawals for non-eligible purposes trigger inclusion in taxable income plus a penalty equal to the avoided tax, with exceptions for death, disability, or bankruptcy