NJ S1391

Establishes the New Jersey First-Time Home Buyer Savings Account Program administered by the NJ Housing and Mortgage Finance Agency to help first-time buyers save for down payments and closing costs

Allows annual contributions up to $15,000 ($7,500 for married filing separately), with a lifetime contribution cap of $75,000 and maximum account value of $150,000

Provides a 5% tax credit on contributions up to $15,000 annually, with unused credits carried forward up to seven years

Excludes account earnings from gross income until distribution, with qualified distributions for home purchases remaining tax-free

Eligibility requires New Jersey residency, annual gross income of $175,000 or less for three prior years, no home ownership in the previous three years, and completion of an approved home buyer education course

Imposes a 10% penalty on withdrawals used for non-qualified purposes (exceptions for death, disability, or bankruptcy)