NJ S1756

Creates the New Jersey First-Time Home Buyer Savings Account Program administered by the New Jersey Housing and Mortgage Finance Agency to help first-time buyers save for home purchases in the state.

Provides a gross income tax credit equal to 5% of contributions up to $15,000 annually ($7,500 for married individuals filing separately), with unused credits carried forward for up to seven years.

Limits annual contributions to $15,000, lifetime contributions to $75,000, and total account value to $150,000; earnings on accounts are tax-free until distributed, and qualified distributions for eligible home purchase expenses remain tax-exempt.

Requires participants to have annual gross income of no more than $175,000 in each of the three preceding years, complete an approved home buyer education course, and not have owned a principal residence in the prior three years.

Imposes a 10% penalty on withdrawals not used for qualified home purchase expenses, account transfers, or maintenance fees, with exceptions for death, disability, or bankruptcy proceedings.