Senate Committee Passes First-Time Home Buyer Help
HARRISBURG PA – Proposed legislation that would allow home-buying first-timers and others who qualify a chance to save for down payments and closing costs with the benefit of a tax deduction was approved Wednesday (April 28, 2021) by the state Senate Urban Affairs and Housing Committee, under the sponsorship of 24th District Sen. Bob Mensch.
In addition to first-timers, the bill would apply to those who have not owned or purchased a home within three years leading up to the purchase. Account holders would be permitted to contribute 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.
Mensch, whose district includes residents of parts of Pottstown, Upper and West Pottsgrove, and much of the Perkiomen and Upper Perkiomen valleys, estimated the proposal could result in an annual increase of up to 4,000 home purchases within Pennsylvania. Its economic impact could range between $7.8 million to $68.8 million, he added.
Such accounts might serve as important tools “in helping people overcome the financial obstacles to home ownership,” Mensch said. Before becoming law, the proposal must pass in both the state Senate and House, and be signed by the governor.