HB 1241 Summary

• Allows first-time home buyers who are North Dakota residents to establish interest-bearing savings accounts and receive a state income tax deduction of up to $2,000 annually ($4,000 for joint filers) on contributions to the account.

• Limits total lifetime deductions to $20,000 ($40,000 for joint filers) and requires account designation by April 30 of the year following account opening.

• Defines eligible uses as down payments and closing costs for purchasing a single-family residence in North Dakota; withdrawals for other purposes or remaining funds after 10 years trigger mandatory tax liability recapture.

• Requires accountholders to submit annual reports and transaction reports to the tax commissioner; financial institutions are not required to monitor account compliance or verify withdrawal purposes.

• Effective for taxable years beginning after December 31, 2018.