Rhode Island Senate Bill S0415

Rhode Island 2025 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25

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 proposition aims to modify existing state tax laws, specifically allowing tax modifications of up to $50,000 on contributions and up to $150,000 on accrued interest and dividends that can be excluded from the individual's federal adjusted gross income. This modification is significant as it provides a financial incentive for potential home buyers to save more effectively and introduces a structured approach to help them accumulate funds for purchasing a home.

Summary

Bill S0415 aims to create a First Time Home Buyer Savings Program in Rhode Island. This program will allow individuals to save money specifically for purchasing their first home, with monetary contributions made into a designated savings account. Participants in the program can deposit up to $50,000 and then enjoy tax deductions based on those contributions. The goal here is to facilitate the home-buying process for first-time buyers amid rising housing costs by promoting savings efforts.

Contention

Notably, while proponents argue that this act would alleviate the financial strain on first-time home buyers, there may be concerns regarding the program's long-term sustainability and whether it adequately addresses the broader systemic issues within the housing market. Some legislators and housing advocates may contend that while promoting savings is beneficial, it should be paired with measures that address housing supply and affordability directly.