PA SB803

Establishes the First-time Homebuyer Savings Account Program within the Pennsylvania Treasury Department, allowing first-time homebuyers to open dedicated savings accounts for down payments and closing costs on single-family residences in the Commonwealth

Account holders may deduct up to $5,000 annually ($10,000 for joint filers) from state taxable income, with account earnings also excluded from taxation, subject to a 10-year limit and $50,000 aggregate principal cap

Maximum total contributions to an account are capped at $150,000, and funds may only be used for eligible costs including down payments and closing costs on a principal residence

Withdrawals used for non-eligible purposes trigger inclusion of the full amount as taxable interest income plus a 10% penalty, with exceptions for death, disability, or bankruptcy

Takes effect 180 days after enactment, with the Treasury Department authorized to leverage existing administrative structures from the PA 529 or ABLE savings programs