HB1607: HB1607 Georgia First-Time Homebuyer's Savings Account Act; enact

Georgia does not currently have a dedicated savings account program for first-time homebuyers. This bill would create one by adding a new chapter to Title 7 of Georgia's banking and finance laws. Individuals could open a 'first-time homebuyer savings account' at a bank, credit union, or similar institution, name a beneficiary, and contribute cash or marketable securities with no cap on account balance. Money in the account could be used only for costs tied to buying a single-family home in Georgia, such as down payments, closing costs, inspections, and insurance premiums paid at closing. Account holders could deduct contributions from their state taxable income, up to $6,000 a year for single filers or $12,000 for joint filers, capped at $60,000 or $120,000 over the life of the account, for up to 15 years. Withdrawals not used for qualifying home expenses would trigger added taxable income and a 10 percent penalty, with exceptions for death, disability, or military relocation. The law would take effect January 1, 2027.

• Creates a new type of savings account, called a first-time homebuyer savings account, that Georgians can open at banks, credit unions, or similar institutions.
• Allows account holders to deduct contributions from their state taxable income, up to $6,000 a year for single filers and $12,000 for joint filers.
• Caps lifetime deductible contributions per beneficiary at $60,000 for single filers and $120,000 for joint filers, and limits the deduction to 15 years.
• Exempts interest and earnings on the account from state income tax as long as the money is eventually used for qualifying home purchase expenses.
• Imposes a 10 percent penalty plus added taxable income on withdrawals not used for qualifying home expenses, with exceptions for death, disability, or military relocation.
• Directs the Department of Revenue to create standard forms for designating accounts and beneficiaries and to allow penalties for fraudulent use of accounts.

Georgia residents saving to buy a first home, including joint filers and married couples, banks and credit unions that hold these accounts, and the Department of Revenue, which must create forms and monitor for fraudulent or improper use of accounts.

First-time buyers in Georgia would get a new way to reduce their state tax bill while saving for a home purchase, potentially making costs like down payments and closing fees easier to cover. Financial institutions would face new account types but no new reporting duties, while the Department of Revenue takes on new oversight work.

• Section 1 (new O.C.G.A. § 7-11-3) defines key terms, including who counts as a first-time homebuyer: someone who hasn't owned or purchased a home in the past three years.
• New O.C.G.A. § 7-11-4 lets an individual open and designate an account, name a beneficiary by April 15 of the following year, and jointly own accounts with a spouse who files jointly.
• New O.C.G.A. § 7-11-6 exempts financial institutions from having to track fund usage, allocate joint funds, or report extra information to the Department of Revenue.
• New O.C.G.A. § 7-11-7 sets the annual and lifetime deduction limits ($6,000/$60,000 single, $12,000/$120,000 joint) and the 15 year cap on claiming the deduction.
• New O.C.G.A. § 7-11-8 sets penalties for unqualified withdrawals: added taxable income plus a 10 percent penalty, with exceptions for death, disability, or military relocation, and allows one tax-free transfer to a new account per year.
• New O.C.G.A. § 7-11-9 lets the Department of Revenue disallow deductions or impose penalties for accounts used mainly for tax avoidance or involving false designations.
• Section 2 sets the effective date as January 1, 2027, applying to taxable years beginning on or after that date.

1. 2026-04-02House Second Readers (House)
2. 2026-03-31House First Readers (House)
3. 2026-03-27House Hopper (House)

• Scott Hilton (R, HD-048)Primary sponsor
• Chuck Efstration (R, HD-104)
• Sandy Donatucci (R, HD-105)
• Deborah Silcox (R, HD-053)
• Carter Barrett (R, HD-024)
• Jan Jones (R, HD-047)

• homeownership
• first-time homebuyers
• state tax deductions
• savings accounts
• housing affordability