Posted on May 3, 2021
HARTFORD — During a meeting of the Finance Committee on Monday, State Representative Tammy Nuccio (R-Tolland) joined her colleagues in supporting a program to establish a First-Time Homebuyer’s Savings Account for residents of the state of Connecticut.
Nuccio, who has advocated for policies to encourage younger residents to live and seek opportunities in the state, said she was happy to vote for a proposal that would allow them to build long-term financial equity through homeownership.
“The cost of buying your first home is a major obstacle that prevents people of all ages from settling in Connecticut. All too often, that barrier discourages residents from laying down their roots here, instead leading them to seek out property in other states. Hopefully, this program would help to incentivize residents to save for a down payment not only on their first home, but in the future of our communities,” Nuccio said.
According to the nonpartisan Office of Legislative Research, HB 5027 would also enable the Department of Banking to apply a limited personal income tax deduction to contributions made to their account.
According to their report, “the deduction equals, per taxable year, all contributions deposited by an account holder in the savings account during that year, but not to exceed $5,000 for an individual or head of household, or $10,000 for those filing jointly. Account interest and investment earnings that are properly included in gross income for federal tax purposes are also deductible.”
The bill, which has also received the support of the Connecticut Realtor’s Association, passed out of the Finance Committee via a unanimous vote on Monday.
The bill has now been placed on the House calendar, where it awaits further action before the scheduled end of the legislative session at midnight on June 9th.