Governor Gretchen Whitmer signed multiple bills into law on Wednesday, including House Bill 4290 and Senate Bill 145, which establish the Michigan First-Time Home Buyers Savings Program in the Department of Treasury.
The program allows Michiganders to open first-time home buyer savings accounts to save for and purchase single-family residences in Michigan.
Any associated contributions, interest accrued, or qualified withdrawals from an account would be exempt from taxation, and Michiganders could claim up to $5,000 for a single return or $10,000 for a joint return on their taxes.
“Homeownership creates opportunity for Michigan families and sets a foundation for economic success,” stated Governor Whitmer. “I am proud to sign this legislation which will put Michiganders first by helping families save for and purchase homes.”
“This new law sets up the state’s first dedicated savings vehicle for a new home purchase,” says James Iodice, Michigan Realtors President. “These accounts will help individuals and families achieve the dream of homeownership, retain our talented college graduates, and promote financial literacy and smart savings. Realtors® are very excited to work as ambassadors for this new program. We are thankful to Governor Whitmer, as well as Representative Manoogian and Senator Horn for their leadership on this important issue.”
“Homeownership is a hallmark of the American Dream, and yet too many Michiganders – particularly young folks – are unable to save up enough to afford their first homes in here in our communities,” said Rep. Manoogian, D-Birmingham. “This new program will put young people and new families on the pathway to success and will help our state retain its best and brightest, allowing people to stay here in our communities to raise the next generation of Michiganders. I’m grateful we have a governor who can see the potential in every one of residents and families, and cities and townships, and I thank her for her support and partnership in bringing this bill across the finish line and into law.”
“I’m proud to see this program finally become a reality,” said bill sponsor Senator Ken Horn, R-Frankenmuth. “Buying a house is hard, especially in today’s economy. We know the importance of home ownership in establishing vibrant communities and in retaining and attracting talented young people to Michigan.”
To view a copy of House Bill 4290, .
To view a copy of Senate Bill 145, .
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