Personal income taxes: exclusion: homeownership savings accounts.

The Personal Income Tax Law, in modified conformity with federal income tax laws, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. This bill, on and after January 1, 2025, and before January 1, 2030, would exclude from gross income any amount accruing to a first-time homeownership savings account, as defined, whose beneficiary is a qualified taxpayer. The bill would also, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, exclude from gross income any amount withdrawn from a first-time homeownership savings account that is used to pay for qualified homeownership savings expenses of a qualified taxpayer who established the account. The bill would define a first-time homeownership savings account as an account with a financial institution that is designated as a first-time homeownership savings account by the person establishing the account that meets specified requirements. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.