NY A06933

Establishes the New York State First Home Savings Program under Article 28 of the Private Housing Finance Law, allowing first-time home buyers to open savings accounts for qualified home purchases.

Permits account owners to contribute up to $100,000 per account in cash, with contributions limited to $5,000 annually for individuals/heads of household or $10,000 for married couples filing jointly, with eligibility restricted to those with adjusted gross income not exceeding 250% of area median income.

Withdrawals used for qualified first home purchases within New York are tax-free at the state level; nonqualified withdrawals trigger taxation at the account owner's federal rate plus a 10% state penalty on earnings.

Requires the State Comptroller to implement the program, select financial institutions as account managers, and establish oversight mechanisms including annual audits and reporting requirements; program managers must comply with recordkeeping and disclosure standards.

Adds personal income tax deductions under Tax Law Section 612 for eligible contributions to first home savings accounts and requires taxation of excess distributions attributable to deductible contributions; effective 180 days after enactment.