AN ACT CONCERNING REAL PROPERTY TAX ABATEMENTS FOR CERTAIN FIRST-TIME HOMEBUYERS.

HB 6888 allows Connecticut municipalities to offer a property tax break of up to $500 per year for up to five years to qualifying first-time homebuyers. It specifically applies to buyers who purchased their primary residence using funds from the Connecticut Housing Finance Authority (CHFA) and have a mortgage with CHFA. The tax abatement is optional for towns and must be approved by local governing bodies. This policy directly affects first-time homebuyers who use CHFA financing, reducing their annual property tax burden during the initial years of homeownership. The program takes effect for tax years starting October 1, 2025.