Erie, PA
66°
Fair
5:43 am8:57 pm EDT
FriSatSun
73°F / 59°F
72°F / 59°F
81°F / 70°F
Search
Close this search box.

Local News

Pa. House committee moves to create savings accounts for first-time homeowners

iStock

Ian Karbal, Pennsylvania Capital-Star
May 21, 2024

The House Housing and Community Development committee passed a bill that would allow Pennsylvanians to create tax deductible savings accounts meant for the purchase of their first home.

“Home ownership strengthens communities and provides stability for families,” wrote Rep. Ryan Bizzarro (D-Erie) in a memo detailing why he’s sponsoring the bill. “A first-time homebuyers saving account can be a tool in helping people overcome financial obstacles to home ownership.”

The bill would allow individuals to deduct up to $5,000 a year from their state income tax and put that money in a savings account with the sole purpose of purchasing a first home. Joint filers would be able to claim up to $10,000 a year. 

Money in those accounts could only be used to pay for a down payment on a first home and any other costs associated with closing that deal.

Similar programs have been introduced in a handful of other states, including Virginia, Colorado and Minnesota. 

The bill received bipartisan support.

“I think it’s a great proposal, said Rep. Thomas Kutz (R-Cumberland). “I look forward to offering our support from our [Republican] caucus.”

The bill passed the House Housing and Community Development committee with a unanimous vote and must still pass both chambers of the statehouse and be signed by Gov. Josh Shapiro.

Pennsylvania Capital-Star is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Kim Lyons for questions: info@penncapital-star.com. Follow Pennsylvania Capital-Star on Facebook and Twitter.

This article is republished from Pennsylvania Capital-Star under a Creative Commons license. Read the original article.