Bill Detail: HB23-1189

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Title Employer Assistance For Home Purchase Tax Credit
Status Governor Signed (06/07/2023)
Bill Subjects
  • Fiscal Policy & Taxes
  • State Government
  • State Revenue & Budget
House Sponsors S. Bird (D)
R. Weinberg (R)
Senate Sponsors R. Zenzinger (D)
K. Mullica (D)
House Committee Finance
Senate Committee Finance
Date Introduced 02/10/2023

The bill creates a state income tax credit for employers who make
a monetary contribution to an employee for use by the employee in
purchasing a primary residence. The amount of the credit allowed is 5%
of an employer's contribution to an employee, but the credit is capped at
$5,000 per employee per year and an employer cannot receive a credit of
more than $750,000 for all contributions made in a year to employees.
The employee must use the money contributed for eligible expenses
which include a down payment and closing costs, including fees for
appraisals, mortgage origination, and inspections. An employee may
authorize their employer to withhold a specified amount of the employee's
earnings as an employee contribution into the savings account established
by the employer that holds the employer contribution. If an employee
ends their employment with the employer or if the employee intends to
use the employee contribution in a manner that is not consistent with an
eligible expense, the employee forfeits any unexpended amount of the
employer contribution and the amount of the credit allowed to the
employer for the employer contribution is subject to recapture. In such an
occurrence, the employee is entitled to the employee contribution, plus
any interest earned. The credit is not refundable but may be carried
forward by the employer for a period of not more than 5 years. The
amount contributed by the employer may be subtracted by the employee
from the employee's federal taxable income for the purpose of
determining their state taxable income; except that, if an employee
forfeits the employer contribution, then the amount that the employee had
subtracted from their federal taxable income is added back to their federal
taxable income for the purpose of determining their state taxable income
for the subsequent tax year. The executive director of the department of
revenue may promulgate rules related to the implementation of the credit.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (07/18/2023) (most recent)  
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