Rep. Pizzuto Supports First-Time Homebuyers Program

State Representative Bill Pizzuto (R-71) today joined his colleagues on the Banking Committee to unanimously approve a measure that would allow creation of a first-time homebuyers savings program for Connecticut residents.

Similar to programs in more than a dozen states, SB 182 – An Act Establishing a First-Time Homebuyer Savings Account and Tax Deduction – would allow individuals or couples (account holder) to establish a savings account specifically to use toward the down payment or closing costs associated with the purchase of a first home in the state. Account holders would be able to claim a state income tax credit equal to what is placed in the savings account, up to $2,500 for single filers and $5,000 for couples. An income cap of $100,000 for single filers and $200,000 for couples applies. The legislation does not place a limit on contribution amount or overall account value but stipulates that the funds must be used by first-time homebuyers who reside within the home purchased with account funds.

“It’s important to make sure we’re providing the proper incentives to encourage young adults and recent graduates to stay and use their knowledge and talents here in Connecticut, and this savings account will do just that,” Rep. Pizzuto said. “When I was director of UConn Waterbury, I knew many incredibly talented people who sought employment in other states due to the high cost of living here in Connecticut. This savings program has the potential to keep those individuals here, but also to bring new residents and energy to the state.”

Under the proposed legislation, account funds are specifically limited to paying for the “down payment and all allowable closing costs paid or reimbursed by a qualified beneficiary to purchase a single family residence in this state to serve as the qualified beneficiary’s primary residence” and for administrative and savings institution fees related to the account.

The Committee received testimony in support of the measure from the Connecticut Realtors, Connecticut Bankers Association, Connecticut Council of Small Towns, and the Homebuilders-Remodelers Association.

The bill awaits further action by the state Senate.