Michigan First Time Home Buyers Savings Program
February 11, 2022
Michigan
Whitmer Signs Bills into Law
The new laws create savings for first-time homebuyers and adds judges to areas with high caseloads
LANSING, Mich. - Governor Gretchen Whitmer today signed House Bill 4290 and Senate Bill 145 to lower costs for first-time home buyers by creating tax-exempt saving accounts and allow Michiganders to deduct contributions from their taxes. The governor also signed Senate Bill 694 into law, which creates six new judgeships in areas around the state with high caseloads to ensure Michiganders have better service in our state’s judicial system, and Senate Bill 654, which reorganizes courts in certain Lake Michigan shoreline communities. The legislature passed these bills with overwhelming bipartisan support.
First-Time Home Buyer Savings Program
House Bill 4290 and Senate Bill 145 establish the Michigan First-Time Home Buyer Savings Program in the Department of Treasury, to allow 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,” said 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,” said 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.”
