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WV SB725

Bill

Status

Introduced

2/3/2026

Primary Sponsor

Trenton Barnhart

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Creates tax-advantaged savings accounts for West Virginia residents who have not owned a home in the prior three years to save for down payments and closing costs on a first home purchase
  • Allows annual state income tax deductions of up to $5,000 for individual filers or $10,000 for joint filers, with a lifetime maximum of $50,000 in tax-exempt contributions and earnings over a 10-year period
  • Phases out tax benefits for higher incomes, with no deduction allowed for joint filers earning $200,000+ or individual filers earning $100,000+
  • Imposes a 10% penalty plus income tax on withdrawals not used for eligible home purchase costs, with exceptions for death, disability, or bankruptcy
  • Applies to tax years beginning January 1, 2026, through January 1, 2032, with accounts established before 2030 retaining their tax-exempt status for the full 10-year term

Legislative Description

Creating First-Time Home Buyer Savings Account Act

Taxation

Last Action

To Finance

2/25/2026

Committee Referrals

Finance2/25/2026
Banking and Insurance2/3/2026

Full Bill Text

No bill text available