NE LB151

Creates the First-Time Homebuyers Savings Account Act allowing Nebraska residents to open tax-advantaged savings accounts at financial institutions for purchasing their first home, effective January 1, 2026

Permits annual state income tax deductions of up to $4,000 for married couples filing jointly or $2,000 for individual filers on contributions, plus deductions for interest earned on the accounts

Sets aggregate lifetime deduction limits of $40,000 for joint filers and $20,000 for individual account holders, with accounts expiring after 10 years from opening

Requires designated beneficiaries to be first-time homebuyers who have not owned a residence for three years, with funds usable only for down payments and closing costs on single-family Nebraska residences

Imposes a 10% penalty plus income tax recapture on withdrawals used for purposes other than eligible home costs, with exceptions for death or court-ordered garnishments