Indiana legislation · 2026 Regular Session
Indiana HB1403: First time home buyer savings program.
Status: In committee, January 8, 2026
Establishes the first time home buyer savings program (program) for the purpose of assisting first time home buyers who seek to open a first time home buyer savings account (account) at a financial institution to save money for the purchase of a single family residence. Requires the Indiana housing and community development authority to administer the program, to prepare and supervise the issuance of public information concerning the program, and to prescribe various forms for use by financial institutions that choose to offer accounts. Specifies that: (1) money in an account (including all earnings or interest on an account) is exempt from taxation in Indiana; and (2) withdrawals from an account used for a down payment and allowable closing costs for the purchase of a single family residence; are exempt from state adjusted gross income taxation. Creates a state adjusted gross income tax credit for contributions to an account (credit) in an amount equal to the lesser of: (1) 20% multiplied by the amount of the total contributions made to the account during a taxable year; or (2) $5,000. Requires repayment of all or a part of the credit in a taxable year in which the taxpayer withdraws funds from an account for purposes other than payment of a down payment and allowable closing costs.
What the bill says
A bill FOR AN ACT to amend the Indiana Code concerning taxation.
From the introduced text:
A BILL FOR AN ACT to amend the Indiana Code concerning taxation. SECTION 1. IC 5-20-11 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]: Chapter 11. First Time Home Buyer Savings Program Sec. 1. As used in this chapter, "account holder" means a first time home buyer who establishes a first time home buyer savings account. Sec. 2. As used in this chapter, "authority" refers to the Indiana housing and community development authority created by IC 5-20-1-3. Sec. 3. As used in this chapter, "eligible costs" and (2) any allowable closing costs listed as disbursements on a settlement statement; for the purchase of a single family residence by an account holder. Sec. 4. As used in this chapter, "financial institution" means a bank, savings association, credit union, or any other institution 2026 IN 1403--LS 7057/DI regulated under IC 28 or federal law that has a physical location in Indiana. Sec. 5. As used in this chapter, "first time home buyer" means an individual who is an Indiana resident and has not owned or purchased, either individually or jointly, a single family residence during a period of three (3) years before the date of the purchase of a single family residence. Sec. 6. As used in this chapter, "first time home …
Sponsors
- Wendy Dant Chesser (D, HD-071) · primary sponsor
- Carey Hamilton (D, HD-087)
- Ethan Lawson (R, HD-053)
Latest actions
- : First reading: referred to Committee on Ways and Means
- : Authored by Representative Dant Chesser
- : Coauthored by Representatives Hamilton, Lawson
Subjects: AGENCIES; Housing and Community Development Authority (IHCDA), FINANCIAL SERVICES; Financial Institutions, TAXES; Adjusted Gross Income Taxes, PROPERTY; Housing
Common questions
- What is HB1403?
- HB1403 is a bill in the Indiana Legislature (2026 Regular Session): First time home buyer savings program.
- What does HB1403 do?
- In its own words: A bill FOR AN ACT to amend the Indiana Code concerning taxation.
- What is the status of HB1403?
- In committee as of January 8, 2026. Latest action: First reading: referred to Committee on Ways and Means (January 8, 2026).
- Who sponsored HB1403?
- Wendy Dant Chesser (D, HD-071), with 2 co-sponsors.
- Where is the official record for HB1403?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1403
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.