HB 730 — An Act providing for the establishment of first-time home buyer savings accounts for first-time home buyers in this Commonwealth.

PRIOR PRINTER'S NO.

715 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1614 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

DAVIS, ZIMMERMAN, FREEMAN, DRISCOLL, O'MARA, SAYLOR, CULVER, SAINATO, MALAGARIMALAGARI, MADDEN, OTTEN, MARKOSEK, HANBIDGE AND MADDEN,MIZGORSKI, MARCH 3, 2021CHLEGEL2021 REFERREDAS TOREPORTED FROM COMMITTEE ON URBAN AFFAIRS, MARCHHOUSE 3,OF REPRESENTATIVES, AS AMENDED, MAY 25, 2021 AN ACT Providing for the establishment of first-time home buyer savings accounts for first-time home buyers in this Commonwealth.

"Ineligible use." The sale or lease of a single-family <-- residence within three years of the settlement date.

"Settlement date." The date on which the seller in a real <-- estate transaction executes a deed or signs a settlement statement, whichever occurs later, to convey title to the purchaser.

"Settlement statement." A statement of receipts and 20210HB0730PN1614 - 2 - disbursements from a real estate transaction, including a 20210HB0730PN0715 - 2 - statement prescribed under the Real Estate Settlement Procedures Act of 1974 (Public Law 93-533, 88 Stat.

"Single-family residence." A single-family residence owned and occupied by a qualified beneficiary as the qualified beneficiary's principal residence, which may include a manufactured home, trailer, mobile home or unit in a condominium, cooperative or planned community, and provided that <-- the qualified beneficiary does not permit an ineligible use of the residence.

(c) Use of first-time home buyer savings account.--Money from a first-time home buyer savings account may only be used to 20210HB0730PN1614 - 3 - pay or reimburse a qualified beneficiary's eligible costs for 20210HB0730PN0715 - 3 - the purchase of a single-family residence in this Commonwealth.

(1) may not exceed $5,000 for an account holder who 20210HB0730PN1614 - 4 - files an individual personal income tax return or $10,000 for 20210HB0730PN0715 - 4 - joint account holders who file a joint personal income tax return;

(e) Remaining money.--Money in a first-time home buyer savings account not expended on eligible costs before expiration of the 10-year period under subsection (c)(1) shall be included in the account holder's taxable income under Article III of the 20210HB0730PN1614 - 5 - Tax Reform Code of 1971.

20210HB0730PN0715 - 5 - (f) Application to alternative basis taxation.--The deduction and exclusion from taxable income shall apply to any alternative basis for calculating taxable income under Article III of the Tax Reform Code of 1971.

20210HB0730PN1614 - 6 - (3) Allocate money in a first-time home buyer savings 20210HB0730PN0715 - 6 - account among joint account holders or multiple qualified beneficiaries.

<-- (a) Purposes other than eligible costs.--Except as permitted under section 3(h), if an account holder or beneficiarySECTION withdraws7. any amount from a first-time home buyer savings account and uses the withdrawal for a purpose other than eligible costs:

WITHDRAWAL FOR PURPOSE OTHER THAN ELIGIBLE COSTS.

<-- EXCEPT AS PERMITTED UNDER SECTION 3(H), IF AN ACCOUNT HOLDER OR beneficiary withdraws any amount from a first-time home buyer savings account and uses the withdrawal for a purpose other than eligible costs:

(2) The account holder or beneficiary shall pay to the department a penalty equal to 10% of the amount 20210HB0730PN1614 - 7 - withdrawn.

(i) withdrawn by reason of the account holder's or 20210HB0730PN0715 - 7 - the beneficiary's death or disability;

(b) Ineligible uses.--If an account holder or beneficiary <-- withdraws any amount from a first-time home buyer savings account and after the withdrawal an ineligible use occurs:

(b) Rules and regulations.--The department may promulgate rules and regulations necessary to administer and enforce this 20210HB0730PN1614 - 8 - act.

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