77-27,231.

First-time home buyer savings account; requirements; limitations; use.

(1) Beginning January 1, 2027, any individual may open an account with a financial institution and designate the account, in its entirety, as a first-time home buyer savings account to be used to pay or reimburse a qualified beneficiary's eligible expenses for the purchase or construction of a primary residence in Nebraska. An individual may be the account holder of multiple accounts, and an individual may jointly own the account with another person if they file a joint income tax return. To be eligible for the subtraction under subsection (27) of section 77-2716, an account holder must comply with the requirements of this section.

(2) An account holder must designate, no later than April 15 of the year following the taxable year during which the account is established, a first-time home buyer as the qualified beneficiary of the first-time home buyer savings account. The account holder may designate himself or herself as the qualified beneficiary. The account holder may change the designated qualified beneficiary at any time, but there shall not be more than one qualified beneficiary at any time. An account holder shall not have multiple accounts with the same qualified beneficiary, but an individual may be designated as the qualified beneficiary of multiple accounts.

(3) The following limits apply to a first-time home buyer savings account:

(a) The maximum contribution to a first-time home buyer savings account for a taxable year is five thousand dollars for an individual and ten thousand dollars for account holders who file a joint return; and

(b) The maximum amount of all contributions for all taxable years to a first-time home buyer savings account is twenty-five thousand dollars for an individual and fifty thousand dollars for account holders who file a joint return.

(4) Money may remain in a first-time home buyer savings account for unlimited duration without the contributions being subject to recapture or penalty.

(5) The account holder shall not use money in an account to pay expenses of administering the account, except that a service fee may be deducted from the account by a financial institution.

(6) The account holder is responsible for maintaining documentation for the first-time home buyer savings account and for eligible expenses related to the qualified beneficiary's purchase of his or her primary residence.