New Jersey Legislators Propose Tax-Advantaged Savings Accounts for First-Time Homebuyers
New Jersey Democrats have introduced a legislative proposal to create special savings accounts for first-time homebuyers, offering tax benefits to encourage homeownership. The initiative, part of a broader housing tax package, aims to make homeownership more accessible by allowing eligible individuals to save up to $15,000 annually, with a lifetime cap of $75,000. These accounts would provide a 5% income tax credit on contributions and exempt interest earned from taxes if used for home purchases. To qualify, applicants must earn less than $175,000 annually, have no recent homeownership history, and complete a homebuyer education course. Withdrawals would incur a 10% tax penalty unless due to hardship. The bill, S-1756, has passed the Community and Urban Affairs Committee and is headed to the Senate Budget and Appropriations Committee. 
