HARRISBURG – Legislation sponsored by Senator Bob Mensch (R-24) advanced out of the Pennsylvania Senate’s Urban Affairs and Housing Committee today. Senate Bill 157 would permit eligible Pennsylvanians to open special savings accounts and take state tax deductions for savings toward expenses such as a down payment and closing costs.
“Home ownership can help to strengthen communities and provide stability for growing families,” said Mensch. “A first-time homebuyers saving account will be an important tool in helping people overcome the financial obstacles to home ownership.”
The bill would apply to first-time homebuyers and those who have not owned or purchased a home within the 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.
“It is estimated that this type of savings account program in Pennsylvania could result in an annual increase of up to 4,000 home purchases within the state,” Mensch said. “The result would be an overall positive impact on Pennsylvania’s economy, spurring additional economic activity, job creation and earnings for households. It’s estimated that the economic impact could range between $7.8 million to $68.8 million.”
Watch Senator Mensch’s floor remarks here.
For more information on Senator Mensch’s legislation, visit www.senatormensch.com. State updates can also be found on Senator Mensch’s Facebook at facebook.com/PASenatorBobMensch/ or Twitter @SenatorMensch.
CONTACT: Madison Scarfaro firstname.lastname@example.org (215) 541-2388