HARRISBURG, Pa. (WHTM) – The Pennsylvania Senate has approved legislation to create special savings accounts for first-time homebuyers.
Senate Bill 309 would allow eligible Pennsylvanians to open a first-time homebuyers savings account and take state tax deductions for savings toward expenses such as a down payment and closing costs.
The bill would apply to people who have not owned or purchased a home in the three years leading up to the purchase.
People could contribute up to $50,000 over a 10-year period. Annual contributions would be capped at $5,000 for single taxpayers and $10,000 for couples filing jointly.
State Sen. Bob Mensch, the bill’s prime sponsor, said the savings account program could result in an annual increase of up to 4,000 Pennsylvania home purchases.
The bill is awaiting consideration in the House of Representatives.