FISCAL NOTE

House Bill 171 as amended and reported by the Committee on Ways and Means Education would amend the Alabama First-time and Second Chance Home Buyer Savings Account Act to 1) allow an individual tax filer an additional five years to claim a deduction on individual income taxes; and 2) extend the sunset provision of establishing new accounts under this act from March 28, 2023, currently, to December 31, 2028. Based on deductions claimed in tax year 2020, this bill would reduce income tax receipts to the Education Trust Fund by an estimated $150,000 annually for each year this program is extended.

Additionally, this bill will further increase the administrative obligations of the Department of Revenue to collect and provide additional information for the annual report.