NY A05098

Establishes the New York State First Home Savings Program allowing first-time home buyers to open dedicated savings accounts for purchasing a house, townhouse, condominium, or cooperative unit within New York State

Provides a state personal income tax deduction of up to $5,000 for individuals or $10,000 for married couples filing jointly on annual contributions to first home savings accounts

Limits total account contributions to $100,000 and restricts eligibility to taxpayers with adjusted gross income at or below 250% of the area median income as defined by HUD

Requires the purchased home to serve as the buyer's primary residence for at least two years; withdrawals within 12 months of opening the account are considered nonqualified

Imposes a 10% state penalty on earnings plus income tax recapture for nonqualified withdrawals or failure to meet the two-year residency requirement, with exceptions for death, disability, military service, or unforeseeable emergencies