Rhode Island House Bill H7673

Rhode Island 2024 Regular Session

• Introduced: 2/15/24
• Refer: 2/15/24

Caption

Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.

Impact

The bill significantly impacts state laws, particularly regarding personal income tax provisions as it amends existing regulations to include new savings options for first-time home buyers. The establishment of a dedicated fund for these savings accounts will not only facilitate affordable homeownership but also aims to stimulate the housing market by encouraging investment in real estate through tax incentives. By fostering financial savings for new buyers, this legislation seeks to enhance opportunities for home ownership within the state.

Summary

House Bill 7673 establishes the First Time Home Buyer Savings Program Act aimed at aiding residents in saving for their first home purchase. Under this program, participants can contribute up to $50,000 into a designated savings account and receive tax modifications allowing this amount to be subtracted from their federal adjusted gross income. Additionally, participants may subtract up to $150,000 of interest and dividend income derived from the savings account from their taxable income, promoting savings for residential property acquisition.

Contention

Discussions surrounding HB 7673 indicate potential concerns regarding the overall effectiveness of tax incentives in achieving its objectives. Some stakeholders argue that simply providing tax breaks may not adequately address the market's structural challenges, such as housing affordability and availability. Critics emphasize the need for a comprehensive approach that includes direct support measures or housing development initiatives alongside these financial incentives to create a substantial impact on first-time buyers.