Please ensure Javascript is enabled for purposes of website accessibility House passes Bizzarro bill to cut taxes for first-time homebuyers

House passes Bizzarro bill to cut taxes for first-time homebuyers

Would create tax-deductible savings accounts exclusively for purchase of first home

Pennsylvania House Democratic Caucus    May 12, 2025 | 3:36 PM

HARRISBURG, May 12 – In response to skyrocketing mortgage rates and the number of first-time homebuyers falling drastically, the Pennsylvania House passed legislation to cut taxes for people looking to buy their first home, bill sponsor Rep. Ryan Bizzarro (D-Erie) announced Monday.

House Bill 818 would allow first-time homebuyers to deposit money into a designated savings account exclusively for the purpose of purchasing their first home. Account owners would be able to deduct that money from their state income tax. Money deposited into these accounts can be used to pay the down payment and closing costs for the purchase of a single-family home in Pennsylvania.

“There’s no feeling like saving up the money and purchasing your first home, but today that’s becoming increasingly difficult with rising interest rates and other financial barriers. But this bill can be a great tool in helping people overcome those obstacles,” said Bizzarro, Chairman of the House Majority Policy Committee. “We estimate that this legislation could help up to 4,000 more people buy their first home in Pennsylvania each year, which would mean great things for our economy and communities.”

The First-Time Homebuyers Savings Accounts would be established under the state Treasury and operate similar to the PA 529 program families use for college and career education. This means family and friends can also contribute to these accounts.

House Bill 818 passed the House with overwhelming bipartisan support and now heads to the Senate for further consideration.