MA S2002

Creates a First-Time Home Buyer 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

Provides a state income tax deduction of up to $5,000 per year for individual filers or $10,000 for joint filers on contributions to the account, plus exempts all account earnings from state income tax

Limits tax benefits to a maximum of $50,000 in total principal and earnings over a 15-year period per account

Defines eligible beneficiaries as individuals who have not owned a home in the 3 years prior to purchase; account holders may designate themselves or another person as the beneficiary

Imposes a penalty equal to the unpaid tax on withdrawals used for non-eligible purposes, with exceptions for death, disability, or bankruptcy