MA S2089

Creates tax-advantaged savings accounts for first-time homebuyers in Massachusetts, allowing individuals to designate accounts at financial institutions starting January 1, 2024

Annual contributions are deductible from state taxable income up to $5,000 for individual filers or $10,000 for joint filers, with earnings also excluded from taxation

Funds must be used for down payments and closing costs on a single-family residence in Massachusetts; maximum aggregate tax benefit capped at $50,000 over a 15-year period

First-time homebuyer defined as someone who has not owned a single-family residence in the prior 3 years; beneficiary can be the account holder or another designated individual

Withdrawals for non-eligible purposes result in taxation of the funds plus a penalty equal to the tax that would have been owed, with exceptions for death, disability, or bankruptcy