.jpg)
LINCOLN — Nebraska State Treasurer Joey Spellerberg is backing legislation he says would help firsttime homebuyers save for a down payment through a tax-advantaged savings account.
Legislative Bill 938, introduced on Spellerberg’s behalf by Sen. Bob Hallstrom of Syracuse, would establish Nebraska First-Time Homebuyer Savings Accounts. Under the proposal, eligible Nebraskans could deduct contributions from their Nebraska adjusted gross income and earn interest that would be exempt from state income tax when used for qualified homebuying expenses.
Early cosponsors of the bill include Sens. Teresa Ibach of Sumner, Tony Sorrentino of Elkhorn, Carolyn Bosn of Lincoln and Eliot Bostar of Lincoln.
“Inflation and higher interest rates have made buying a first home harder than it should be, especially for young families and young professionals,” Spellerberg said. “As the state’s chief financial officer, I believe LB 938 will help more Nebraskans own a home and do it in a financially responsible way.”
Spellerberg, who previously served as Fremont mayor for five years, said housing costs and availability are frequently raised by community leaders across Nebraska as barriers to growth.
In a news release, Spellerberg pointed to several recent housing trends. He said Nebraska median home values have risen over the past decade from roughly $155,000 in the mid-2010s to between $268,000 and $309,000, citing estimates from real estate sites including Redfin and Zillow.
Spellerberg also cited Nebraska Investment Finance Authority data indicating the cost of a home in Nebraska increased 21.25% from 2019 to 2024. He added that an October 2025 comparison by Consumer Affairs showed Nebraska trails several Midwestern states in the time required to save for a down payment.
According to the National Association of Realtors, first-time homebuyers purchased 21% of homes sold nationwide between July 2024 and June 2025. Spellerberg said the association reported that figure as a record low and that the average age of a first-time homebuyer has risen to 40.
“LB 938 is intended to complement other efforts — at the local, state, and federal levels — to make homes more affordable and grow the housing supply,” Spellerberg said. “As Nebraska’s treasurer, I believe the state can and should help Nebraskans save for their first home by letting them keep more of the money they earn.”
Under LB 938, eligible individuals could contribute up to $5,000 per year into a first-time homebuyer savings account, while eligible couples could contribute up to $10,000 per year, according to the proposed legislation.
Total contributions would be capped at $25,000 for individuals and $50,000 for married couples filing jointly.
Funds in the accounts could be used for down payments, closing costs and other expenses related to purchasing a primary residence in Nebraska or financing construction of a primary residence in the state. The release said those withdrawals would become eligible beginning one year after the account is established and funded.
The bill defines a first-time homebuyer as someone who has never owned or purchased a single-family owner-occupied primary residence, either individually or jointly, or an individual who is divorced and has not been listed on a property title for at least three consecutive years.
“Saving for a home is one of the most important steps on the path to financial independence,” Hallstrom said. “LB 938 isn’t a silver bullet to solving housing affordability, but it does offer a meaningful incentive to help first-time homebuyers, while also providing a platform for state lawmakers to discuss a key challenge facing many Nebraskans.”
