First-Time Homebuyers Savings Account Bill Advances

The state legislature’s Banking Committee has approved two bills aimed at supporting the workforce and empowering financial institutions. 

HB 6876 creates a framework for first-time homebuyer savings accounts and offers tax incentives and credits. 

CBIA’s Pete Myers said the plan is a direct investment in businesses and the future of Connecticut.” 

“From a business perspective, homeownership drives community stability and economic vitality—key ingredients for a thriving workforce.” 

Empowering Employees 

The bill was modeled after legislation passed in 14 other states and has received strong bipartisan support.

The bill allows individuals or joint filers to create savings accounts to cover down payments and closing costs. 

Beginning in 2027, contributions are tax-deductible up to $2,500 annually for single filers and $5,000 for joint filers with adjusted gross incomes below $100,000 or $200,000, respectively. 

Withdrawals for eligible costs and interest earned are also exempt from state income tax. 

Employers can claim a 10% tax credit for up to $2,500 per employee.

Employers who contribute to those accounts can claim a 10% tax credit for up to $2,500 per employee.

“Employees who can afford to buy homes are more likely to stay in Connecticut, reducing turnover and enhancing local spending,” Myers said. 

“The bill’s flexibility—allowing contributions from any source, including employers—also gives companies a new tool to attract and retain talent in a competitive labor market.”  

Streamlining Operations

The committee also approved a bill that eliminates the requirement for small and medium-sized banks to obtain approval from the Department of Banking for renovations costing more than $750,000.

Myers said HB 6877 would be a positive step towards supporting smaller banks, allowing them to grow and improve their facilities faster. 

“Removing this requirement is the messaging the business community is asking for,” Myers said. 

Both bills move to the House. 

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