Members of the Revenue Committee heard testimony Feb. 11 on a bill that would offer a tax deduction to qualified savings accounts.<\/p>\n
LB372, introduced by Omaha Sen. Joni Craighead, would allow an individual or two individuals jointly to establish a first-time home buyer savings account. All interest or other income attributable to the account would be exempt from state income tax.<\/p>\n
Craighead said the bill would provide an opportunity and incentive for people to become homeowners.<\/p>\n
\u201cNot only would it create a tax incentive for becoming a first-time home buyer, it also would have existing benefits to the real estate, banking and financial industries in Nebraska,\u201d she said.<\/p>\n
Funds in the qualified account could be used to pay eligible costs for the purchase of a single-family residence, including down payment and allowable closing costs. The deduction would apply only to the first $50,000 in the account.<\/p>\n
A nonqualified withdrawal from the account would be subject to a 5 percent penalty and recapture of income in the same amount as the withdrawal. Any person who files a false claim to avoid such penalty or to evade taxes would be guilty of a Class I misdemeanor.<\/p>\n
Walt Radcliffe, representing the Nebraska Realtors Association, spoke in favor of the bill, saying it would provide a lot of benefit to the state with very minimal costs.<\/p>\n
\u201cIf you have several hundred or even thousands of homes sold because of [LB372], this would be a great deal,\u201d he said. \u201cIt also could do a lot outside of the metropolitan area and cities. It could help people get started in a lot of rural communities where real estate is cheaper.\u201d<\/p>\n
No one testified in opposition to the bill and the committee took no immediate action on it.<\/p>\n","protected":false},"excerpt":{"rendered":"
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