BOISE — A bill to create tax-deductible savings account for first-time homebuyers was introduced into the Idaho Legislature on Wednesday.
Gov. Brad Little called for the creation of such savings accounts in his first State of the State address in January. The bill, which is being sponsored by Rep. Robert Anderst, R-Nampa, would create pre-tax accounts people could use for a down payment on a first home. People could put in as much money they want. An individual could deduct up to $3,000 a year tax-free, a couple $6,000.
"The idea of establishing a pre-tax savings account seems to make some sense," Anderst told the House Revenue and Taxation Committee.
Anderst estimates the bill would cost the state about $430,000 a year, with the net tax benefit in a given year being $210 for an individual and $420 for a couple. He said he doesn't expect the bill to become law this year but wanted to introduce it to start the conversation.
The committee voted unanimously to introduce the bill, clearing the way for a full hearing later.