Credits for employer contributions to first-time homebuyer savings accounts

(a)(1) For the taxable or income year commencing on January 1, 2027, but prior to January 1, 2028, there shall be allowed a credit against the tax imposed under this chapter or chapter 229, other than the liability imposed by section 12-707, for contributions deposited by the employer of an account holder in a first-time homebuyer savings account established pursuant to subsection (c) of section 12-724b during the taxable or income years commencing on or after January 1, 2026, but prior to January 1, 2028, provided such account holder was employed by such employer at the time such contributions were made. (2) For the taxable or income year commencing on January 1, 2028, and each taxable or income year thereafter, there shall be allowed a credit against the tax imposed under this chapter or chapter 229, other than the liability imposed by section 12-707, for contributions deposited by the employer of an account holder in a first-time homebuyer savings account established pursuant to subsection (c) of section 12-724b during the taxable or income year, provided such account holder was employed by such employer at the time such contributions were made. (3) The amount of the credit allowed under subdivisions (1) and (2) of this subsection shall be equal to ten per cent of the amount of the contributions made by the taxpayer into the first-time homebuyer savings accounts of account holders of such accounts during the income or taxable year, provided the amount of the credit allowed for any income or taxable year with respect to a specific account holder shall not exceed two thousand five hundred dollars. (b) If the taxpayer is an S corporation or an entity treated as a partnership for federal income tax purposes, the credit may be claimed by the shareholders or partners of the taxpayer. If the taxpayer is a single member limited liability company that is disregarded as an entity separate from its owner, the credit may be claimed by such limited liability company's owner, provided such owner is a person subject to the tax imposed under this chapter or chapter 229. Any taxpayer claiming the credit shall provide to the Department of Revenue Services documentation supporting such claim in the form and manner prescribed by the Commissioner of Revenue Services.