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.
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.
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.
Allows a modification up to $50,000 of taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2025.
Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.
Allows a modification for all taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2025.
Phases in modifications to federal adjusted gross income over a 4 year period for social security income, from 25% up to 100%, beginning on or after January 1, 2025.
Allows a modification to federal adjusted gross income of fifty thousand dollars ($50,000) of taxable pension and/or annuity income for tax years beginning on or after January 1, 2025.
Allows a modification to federal adjusted gross income of twenty thousand dollars ($20,000) of social security income for tax years beginning on or after January 1, 2024.
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.
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.
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.
Gradually phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty-five percent (25%) up to one hundred percent (100%), beginning on or after January 1, 2026.
Phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty percent (20%) up to eighty percent (80%), beginning on or after January 1, 2026.