Broad Support for First-Time Homebuyers Savings Account Bill

Bipartisan legislation creating a first-time homebuyer’s savings account and a related employer tax deduction draw broad support at a Feb. 13 public hearing.

CBIA’s Pete Myers told members of the Banking Committee that HB 6876 was designed to address the state’s high housing costs and tight labor market.

“This legislation will help address two issues impacting impacting economic growth—high homeownership costs and the workforce shortage.” Myers said.

“We believe this legislation will give employers a competitive advantage over surrounding states by allowing businesses to use this account as a recruitment tool.”

Modeled after similar legislation in 14 other states, HB 6876 creates a first-time homebuyer savings account and related tax deductions and credits.

Tax Credits

Co-sponsored by Rep. Jill Barry (D-Glastonbury) and Rep. Tom Delnicki (R-South Windsor), the bill also allows employers to claim tax credits for making contributions to employees’ home ownership accounts.

Banking Committee chair Rep. Jason Doucette (D-Manchester), a strong supporter of similar legislation in the past, signaled his support.

“This bill keeps getting better, and an example of that is CBIA’s idea of an employer contribution,” he said.

CBIA's Pete Myers said the bill helps address the state's affordability crisis and “will be particularly beneficial in attracting and retaining recent graduates, trade school graduates, and members of the armed services.” #reimaginect https://t.co/zj1WjoDxDs

— CBIA (@CBIANews) February 13, 2025

Committee vice chair Rep. Farley Santos (D-Danbury) added that “homeownership creates a vested interest in the community and this would be a tool employers could use to attract and retain young talent.”

Connecticut Association of Realtors general counsel Jim Heckman called the legislation “a very proactive way to encourage savings for a home in a market demonstrating high demand and low inventory.”

Council of Small Towns executive director Betsy Gara shared her organization’s support for the proposal.

“Promoting homeownership opportunities by assisting individuals in saving for a down payment should be a key component of the state’s efforts to promote greater housing opportunities for all,” she said.

Regulatory Burdens

The Banking Committee is also focused on reducing regulatory burdens this session.

The committee heard testimony on HB 6877, which eliminates the requirement for small and medium-sized banks to obtain approval from the Department of Banking for renovations costing more than $750,000.

“Our members have had to devote resources to this application process, which could be better used reinvesting in the communities they serve,” Myers told committee members.

Connecticut Bankers Association president and CEO Thomas Mongellow noted that “federal institutions which hold 70% of deposits in the state, have no such requirement at all.”

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For more information, contact CBIA’s Pete Myers (860.244.1921).