First-time Home Buyer Savings Act (HB 186) Summary

• Authorizes individuals to establish first-time home buyer savings accounts at financial institutions, beginning January 1, 2023, designated solely for paying eligible costs related to purchasing a single-family residence in Ohio.

• Allows account holders to deduct contributions and investment earnings from Ohio adjusted gross income, with annual limits of $6,000 for married couples filing jointly or $3,000 for others, and lifetime limits of $30,000 and $15,000 respectively.

• Imposes a 10% penalty on non-qualified withdrawals, with exemptions for account holder death, disability, bankruptcy proceedings after one year, transfers between accounts, service fees, and military members relocating outside the state.

• Requires account holders to report account activity to the Ohio Department of Taxation starting in the fourth taxable year after designation, including detailed accounting of deposits, withdrawals, and eligible costs paid.

• Amends falsification statutes to make false statements on first-time home buyer savings account forms a criminal offense, and updates tax code definitions to incorporate the new savings account framework.