Harrisburg – The Senate last week approved legislation creating First-Time Homebuyers Savings Accounts in Pennsylvania, according to Senator David G. Argall (R-29), who supported the measure.
Senate Bill 309 would permit eligible Pennsylvanians to open special savings accounts and take state tax deductions for savings toward expenses such as a down payment and closing costs.
“I chaired a hearing of the Majority Policy Committee just last year on the effects of the Brain Drain on Pennsylvania,” said Senator Argall. “Bills like this one help remove barriers for Pennsylvanians who want to settle down and make this their home.”
The bill would apply to first-time homebuyers and those who have not owned or purchased a home within the three years leading up to the purchase. Account holders would be permitted to contribute a total of $50,000 over a 10-year period. Annual contributions would be capped at $5,000 for single taxpayers and $10,000 for those filing a joint return.
The savings account program could result in an estimated annual increase of up to 4,000 home purchases in Pennsylvania. The result would be an overall positive impact on Pennsylvania’s economy, spurring additional economic activity, job creation and earnings for households.