SB201 Alabama 2018 Session

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

Relating to first-time home buyers; to establish a first-time home buyer savings account; and to allow a tax deduction for contributions made to the account and a tax exclusion on earnings from the account to provide qualified first-time home buyers with meaningful incentives to save funds for the purchase of a first home in Alabama.