Committee approves Bizzarro’s bill for first-time homebuyers
Bill would permit tax deduction for savings; Bizzarro to discuss bill at event tomorrow
HARRISBURG, April 11 – The House Urban Affairs Committee today approved a bill that would give first-time homebuyers a tax deduction for money saved toward the purchase of a home, according to the bill’s author, Rep. Ryan Bizzarro, D-Erie.
“My bill would give first-time homebuyers a leg up by allowing them to claim a state tax deduction for certain savings they make toward the purchase of a single-family home,” Bizzarro said. “I introduced this bill because I believe that the benefits of home ownership should be available to all Pennsylvanians, not just those who are wealthier or better established. Our Democratic Plan for PA is to put people first. The committee’s vote today is a great first step in making that happen.”
Rep. Rosemary Brown, R-Monroe/Pike, is a sponsor of the bill and worked closely with Bizzarro.
Bizzarro’s bill (H.B 1981) would establish the “First-Time Home Buyer Savings Account Act,” permitting eligible Pennsylvanians to open special savings accounts and take state tax deductions for savings toward expenses such as a down payment and closing costs.
The bill would apply both to first-time homebuyers and those who have not owned or purchased a home within the three years leading up to the purchase. Account holders would be permitted to contribute a total of $50,000 over a 10-year period. Annual contributions would be capped at $5,000 for single taxpayers and $10,000 for those filing a joint return.
“Although Pennsylvania has some local programs that offer assistance to first-time buyers, these don’t go far enough,” Bizzarro said. “It’s time we joined other states that give new buyers additional incentives to save. I’m urging my colleagues to support this legislation so that more residents in the commonwealth can realize the American dream of becoming homeowners.”