S.21.1-5: Supporting First-time Homeowners Act (Law'd)

[tmthforu94]

Supporting First-time Homeowners Act

Section 1 - Eligibility
1. Any individual in the Southern region may open an account with a financial institution and designate the account as a first-time home buyer savings account.
2. This account shall be used to cover eligible expenses for the purchase or construction of a primary residence located within the Southern region.
3. The designated beneficiary must be a first-time homeowner who has not been the primary owner of a residence previously.

Section 2 - Tax Benefit
1. The following limits shall apply:
a. The maximum contribution to an account in any tax year shall be $3,000 for an individual and $6,000 for a married couple filing a joint return.
b. the maximum amount of all contributions into an account in all tax years shall be $24,000 for an individual and $48,000 for a married couple filing a joint return.
c. the maximum total amount in an account shall be $50,000.
2. Individuals or married couples may claim a tax deduction for the total amount each year. The money may remain in the account for an unlimited duration.
3. Should the individual choose not to apply the funds of this account towards the purchase or construction of a home, the current income tax rate shall be applied to the account and a 10% penalty.

Section 3 - Implementation
1. The act shall go into effect beginning with the 2022 fiscal year.

Sponsor: Tmthforu94

Minimum 48 hours for debate.

[tmthforu94]

This is inspired by a bill that was introduced in the Kansas State House and passed last week with near unanimous support. In essence, this would allow individuals to create a fund, similar to a 529 college plan, that allows them to contribute towards the purchase/construction of a new home, and list it as a tax deduction on their tax return. This would be a great incentive to encourage home buying and making smart financial decisions for our citizens. The amounts listed are consistent with the KS language, and the penalty is something that is included in the 529 plan so I added it here as well.

I yield to any questions and welcome any amendments.

[At-Large Senator LouisvilleThunder]

This bill is a great idea to make life easier for young people starting off in adulthood, and more home ownership is good. Let's get this passed.

[If my soul was made of stone]

I believe that this is a strong step forward to combat one of the great economic disadvantages faced by those of younger generations that has contributed to much societal alienation and resentment, as well as to encourage continued residence in and economic contribution to the region. I am open to potentially increasing the yearly and aggregate caps on contributions depending on what arguments my colleagues pose.

[President Punxsutawney Phil]

I love the idea of this bill.

[tmthforu94]

I am calling for a final vote, 24 hours to object.

[President Punxsutawney Phil]

No objection.

[tmthforu94]

A final vote has started. Please vote aye, nay or abstain.


AYE

[If my soul was made of stone]

AYE

[KoopaDaQuick 🇵🇸]

aye

[reagente]

aye

[President Punxsutawney Phil]

aye

[tmthforu94]

This has enough votes to pass, delegates have 24 hours to change their votes.

[Holy Unifying Centrist]

Aye

[tmthforu94]

This has passed and will be presented to the Governor for signature.