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Bill

S 1391

Authorizes a study of the traffic conditions in the incorporated village of Cedarhurst and its immediate boundaries, thoroughfares, county and state roads

2025 Regular Session Introduced by Patricia Canzoneri-Fitzpatrick

Creates a state program (NJHMFA) offering tax incentives and tax-free earnings to help certified first-time buyers save for a New Jersey principal residence.

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Bill Summary · S 1391

Summary — S.1391 (as reflected in provided documents)

Important note: the materials supplied contain inconsistent and cross‑jurisdictional items (a one‑sentence bill title about a traffic study in Cedarhurst, a Massachusetts docket on harm reduction, and extensive New Jersey bill text and a fiscal note). This summary focuses on the substantive statutory text and fiscal estimate included in the documents, which describe a New Jersey bill establishing a First‑Time Home Buyer Savings Account Program.

Purpose

Create a state‑administered savings program to help certified first‑time buyers accumulate funds for purchasing a principal residence in New Jersey by offering state gross income tax incentives for contributions and tax‑free treatment of account earnings when used for qualifying home‑purchase expenses.

Key provisions

  • Establishes the New Jersey First‑Time Home Buyer Savings Account Program under the New Jersey Housing and Mortgage Finance Agency (NJHMFA). NJHMFA will certify participants, approve participating financial institutions, and administer reporting/compliance.
  • Account and contribution limits:
    • Annual contribution limit: $15,000 per taxpayer ($7,500 if married filing separately).
    • Lifetime contribution cap: $75,000.
    • Maximum account fair market value in any year: $150,000.
  • Tax incentives:
    • A gross income tax credit equal to 5% of qualifying annual contributions (capped at $750 per taxpayer; $375 if married filing separately). Unused credits may carry forward up to 7 years.
    • Earnings on accounts are excluded from gross income if withdrawn as qualified distributions for an eligible home purchase.
  • Qualified uses and definitions:
    • “Eligible expenses” include down payment and specified closing costs (appraisal, mortgage origination, inspection fees, etc.).
    • “Qualified home purchase” refers to acquisition or construction of a principal residence in New Jersey that the account holder will occupy.
    • Accounts may accept transfers from similar programs in other jurisdictions.
  • Non‑qualified withdrawals:
    • Earnings and credited contributions included in income and subject to a 10% penalty (and applicable tax).
  • Program administration:
    • NJHMFA to enter agreements with participating financial institutions, set application/certification processes, and may amend/terminate agreements.

Eligibility (highlights)

  • Must be a NJHMFA‑certified first‑time home buyer.
  • The bill text references additional requirements such as income limits (documents indicate an annual gross income cap of $175,000 over the prior three years for qualifying individuals) and completion of an approved homebuyer education course (as described in the fiscal note).

Fiscal impact

  • The Office of Legislative Services (fiscal estimate dated Sept 24, 2025) finds the net State fiscal impact indeterminate.
    • Potential revenue losses from the 5% tax credit and exclusion of investment earnings depend on participation, contribution levels, investment returns, timing of withdrawals, and whether the program induces new savings.
    • NJHMFA will incur indeterminate administrative costs that scale with participation.

Who is affected

  • Potential beneficiaries: eligible first‑time homebuyers meeting certification and income/education requirements.
  • Financial institutions that enter participation agreements with NJHMFA.
  • State agencies: NJHMFA (program administration) and Division of Taxation (reporting/processing).
  • State budget: potential revenue loss from credits and tax exclusions; offset by penalties on non‑qualified withdrawals in some cases.

Procedural status and notes

  • Documents show the bill was reported out of the Senate Community & Urban Affairs Committee with amendments (6/5/2025) and later referred to Budget & Appropriations; a fiscal estimate is dated 9/24/2025. A hearing was scheduled for 9/15/2025 in one document.
  • Because the package includes unrelated dockets and inconsistent metadata, consult the official legislative website for the authoritative current status and the final enacted text (if any).

Compiled from official sources — confirm details with the bill’s official record.

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