SB201 Alabama 2018 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2018

Title

First-time home buyers, to establish ability to open first-time home buyer savings accounts to save funds for a down payment and closing costs and establish a tax deduction for contributions to the account

Description

This bill would create the Alabama First-time Home Buyer Savings Account Act.

This bill would allow first-time home buyers to establish a first-time home buyer savings account to save funds for a down payment and closing costs for the purchase of a home.

This bill would provide the holder of a first-time home buyer savings account with a state tax deduction of up to $6,000 per year for funds contributed to an individual first-time home buyer savings account or up to $12,000 per year for joint account holders filing a joint tax return for a period not to exceed five years. The bill also provides that the earnings from the first time home buyer account are excluded from taxable income.

This bill would provide a penalty for the withdrawal of funds from a first-time home buyer savings account for a purpose other than the payment of down payment or allowable closing costs for the purchase of a first home in Alabama.

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Subjects

Banks and Banking