SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 1756

STATE OF NEW JERSEY

DATED:  FEBRUARY 5, 2026

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 1756.

      As reported, this bill establishes the New Jersey First-Time Home Buyer Savings Account Program for the purpose of encouraging individuals to accumulate the level of savings necessary for the purchase of their first homes within this State.

      The bill places the program under the direction and control of the New Jersey Housing and Mortgage Finance Agency (agency) and provides for the program to be administered by the executive director and staff of the agency.

      To effectuate the program, the bill directs the agency to perform certain tasks enumerated in the bill.

      The bill provides New Jersey gross income tax benefits for certain contributions made to, and earnings on assets maintained in, a first-time home buyer savings account.  Under the bill, a taxpayer who is a certified first-time home buyer is allowed a credit against the gross income tax in an amount equal to five percent of up to $15,000 of contributions (or up to $7,500 of contributions if married filing separately) that are made during the taxable year to one first-time home buyer savings account.

      In addition, the bill excludes from gross income the earnings on a first-time home buyer savings account.  The bill provides that the earnings on these accounts are to be treated as tax-free until the earnings are distributed from the account, at which time the earnings and the contributions allowed as a tax credit are to be included in the gross income of the distributee unless the withdrawal or distribution is a qualified distribution pursuant to the bill.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.