Rhode Island 2026 Regular Session

Rhode Island Senate Bill S2442

Introduced

2/6/26

Refer

2/6/26

Caption

Establishes the first-time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.

Impact

The introduction of S2442 is anticipated to have a significant impact on state housing laws by promoting home ownership among first-time buyers. By allowing participants to contribute up to $50,000, which can be deducted from their federal adjusted gross income, and providing an additional deduction for up to $150,000 of interest and dividends accrued from these accounts, the bill aims to alleviate some of the financial burdens associated with purchasing a first home. This could potentially enhance home ownership rates and contribute positively to the state's economy over time.

Summary

Bill S2442, formally titled the First-Time Home Buyer Savings Program Act, seeks to establish a program aimed at assisting first-time home buyers in Rhode Island by enabling them to save specifically for the purchase of their first home. The bill mandates the creation of a savings program where individuals can deposit funds into an account designated for this purpose. The general treasurer, in conjunction with the division of taxation and the state investment commission, will oversee this program, ensuring that participant funds are managed and invested in accordance with state laws.

Contention

While S2442 has garnered support for its potential to enhance accessibility to home ownership, it may also generate debate regarding its implications for state tax revenue. Critics might express concerns that the tax deductions could lead to reduced state tax income, impacting funding for other essential services. Moreover, the effectiveness of such savings programs in significantly increasing home ownership rates versus their fiscal implications could be points of contention among lawmakers and stakeholders.

Companion Bills

No companion bills found.

Previously Filed As

RI H5778

Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.

RI S0415

RI H5759

Allows a deduction from federal adjusted gross income for interest payments on outstanding student loans.

RI H5758

Includes payment of social security benefits to the modification reducing federal adjusted gross income on personal income taxes.

RI S0409

Includes payment of social security benefits to the modification reducing federal adjusted gross income on personal income taxes.

RI S0776

Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.

RI H5761

Allows a modification for all taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2026.

RI S0245

Allows a modification to federal adjusted gross income for all social security income for tax years beginning on or after January 1, 2026.

RI S0033

Allows a modification to federal adjusted gross income of twenty thousand dollars ($20,000) of social security income for tax years beginning on or after January 1, 2025.

RI H5474

Phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty percent (20%) up to eighty percent (80%), beginning on or after January 1, 2026.

Similar Bills

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KS SB281

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