Posted on March 19, 2024
HARTFORD- To provide more affordable housing options for workers in our state, State Rep. Tom Delnicki (R-14), Ranking Member of the Banking Committee supported a proposal establishing a first-time homebuyer savings account for a down payment on a home and to pay for certain closing costs.
“Many young adults want to own a home, but the upfront costs are beyond their reach. This proposal is an innovative way to address Connecticut’s workforce and housing shortages by incentivizing Connecticut residents, with the help of their employers, to save for purchasing a home in Connecticut,” said Rep. Delnicki, a co-introducer of the legislation.
The legislation, HB 5344: An Act Establishing First Time Homebuyers Savings Account And Related Tax Deductions And Credit, establishes a first-time homebuyer savings account and related tax deductions and credits. The proposal will also allow employers to claim tax credits for making contributions to their employees’ home ownership accounts. The legislation includes a 10% penalty if the funds are used for anything other than a down payment on a home or closing costs.
Delnicki added that the First Time Homebuyers Savings Account proposal would also benefit businesses in Connecticut looking to attract and retain employees.
According to the Connecticut Business and Industry Association, the bill as a workforce recruitment tool for employers to utilize in Connecticut, which according to Labor Department data has nearly 100,000 job openings. The state has over 90,000 job openings, and this type of savings account would be an added benefit that employers could use to recruit and retain workers right out of trade school, the armed services, or college.
The Office of Legislative Research identified fourteen (14) states that has established similar programs throughout the country: Alabama, Colorado, Idaho, Iowa, Kansas, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Oklahoma, Oregon, and Virginia.
The bill now heads to the House of Representatives for floor debate.