The Pennsylvania Senate approved Wednesday a bill sponsored by Sen. Bob Mensch (R-24) that would create first-time homebuyers savings accounts in Pennsylvania.
The bill, S.B. 1066, would allow eligible Pennsylvanians to open special savings accounts and take state tax deductions for savings toward homebuying expenses such as a down payment and closing costs.
“Homeownership strengthens communities and provides stability for families,” Sen. Mensch said. “A first-time homebuyers saving account will be an important tool in helping people overcome the financial obstacles to homeownership.”
The bill would apply to first-time homebuyers as well as those who have not owned or purchased a home within the three years leading up to the purchase.
Account holders could contribute a total of $50,000 over a 10-year period. Single taxpayers could contribute up to $5,000 annually, and those filing a joint return could contribute up to $10,000 annually.
Sen. Mensch noted that the program could result in an annual increase of up to 4,000 home purchases in the state. The economic impact could range between $7.8 million to $68.8 million.
“The benefits of homeownership extend beyond the home and the buyer,” Sen. Mensch said. “Homeowners put down stakes and make a long-term commitment that strengthens the entire community. I encourage the House of Representatives to approve this bill before the end of session, and provide a fiscally responsible manner to help citizens purchase their first home.”