SB 725
Creating First-Time Home Buyer Savings Account Act
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill creates a First-Time Home Buyer Savings Account Act in West Virginia, designed to help residents save for a down payment and closing costs on a first home. It allows eligible individuals to establish a savings account with a financial institution, potentially receive a deduction on their federal income tax, and offers certain exemptions from taxes on withdrawals used for eligible home purchase expenses. The program is intended to incentivize West Virginia residents to purchase their first homes.
Key provisions
- Creates a ‘First-Time Home Buyer Savings Account’ at financial institutions.
- Allows eligible individuals to subtract contributions to the account from their federal adjusted gross income, with limits based on income levels.
- Establishes penalties for withdrawing funds from the account for purposes other than eligible home purchase costs.
- Requires financial institutions to provide account holder information certificates.
- Requires the Tax Commissioner to propose rules for implementing the act.
- Defines terms such as ‘first-time home buyer,’ ‘eligible costs,’ and ‘settlement statement.’
- Specifies that only cash and marketable securities can be contributed to the account.
- Sets a timeframe for the application of the act (January 1, 2026, to December 31, 2031).
Who is affected
- First-time homebuyers in West Virginia
- Financial institutions in West Virginia
- Taxpayers in West Virginia
- The West Virginia Department of Revenue
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