S.B. No. 139 Summary

• Enacts the "First-time Home Buyer Savings Act" establishing first-time home buyer savings accounts at financial institutions designated to accumulate funds for down payments and closing costs on single-family residences in Ohio.

• Allows account holders to deduct annual deposits up to $5,000 (or $10,000 for married couples filing jointly) and earnings on account balances, with lifetime deduction limits of $50,000 ($100,000 for married couples).

• Requires account holders to designate a qualified beneficiary (first-time home buyer who hasn't owned a home in the prior three years) and report account activity annually to the Department of Taxation using required forms.

• Imposes a 10% penalty on non-qualifying withdrawals and earnings, with exceptions for account holder death, disability, bankruptcy, or transfers between accounts, with funds allowed to remain in accounts for up to 14 years.

• Clarifies that financial institutions are not responsible for verifying account compliance, tracking fund usage, or reporting to tax authorities beyond standard IRS requirements.