LINCOLN, Neb. (AP) — An effort to increase the number of first-time homebuyers in Nebraska is drawing scrutiny from some lawmakers who say the proposal could lead to abuse.
The measure presented to a legislative committee Wednesday would allow residents to set aside up to $150,000 in a special account to help their children or grandchildren cover a down payment on their first home.
Contributions would be in post-tax dollars, but earnings on the money after it’s deposited would be tax-free. Sen. Joni Craighead of Omaha says she introduced it in hopes that it would encourage young people to settle in Nebraska.
Some senators say the bill could favor wealthy families and might enable some people to avoid paying taxes.