Davidson prime supporter of bill passed to help first-time homeowners

HARRISBURG, Feb. 25 –State Rep. Margo Davidson, D-Delaware, announced that the state House of Representatives last week voted to pass a bill that she supported to give first-time homebuyers a tax deduction for money saved toward the purchase of a home.
 

“I was a prime supporter of this bill because we have to make it easier for ordinary Pennsylvanians to own their own home,” she said. “Last week’s vote showed overwhelming bipartisan support for this legislation, which would make homeownership more accessible. I hope the Senate will hear the resounding roar of support for this bill and move it forward to the governor’s desk.”

The First-Time Homebuyer Savings Account Act would allow Pennsylvanians to open special savings accounts and take state tax deductions for eligible expenses such as a down payment and closing costs.

Account holders would be permitted to claim deductions for 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. The bill would apply to first-time homebuyers and those who have not owned or purchased a home within the three years leading up to the purchase.

Allowing Pennsylvanians to establish first-time homebuyer savings accounts could result in an annual increase of up to 4,000 home purchases within the state, with the projected impact from economic activity, job creation and earnings reaching as high as $68.8 million.

The bill now heads to the state Senate for consideration, where it would need to be passed before being sent to the governor for his consideration.