First-time Home Buyers can now have tax-exempt savings accounts and deduct contributions from their taxes. A new law has been signed that would establish the Michigan First-Time Home Buyer Savings Program housed within the Department of Treasury.
On signing the bill, Governor Gretchen Whitmer said, “Homeownership creates opportunity for Michigan families and sets a foundation for economic success.”
The bill was met with praise from real estate industry leaders. James Iodice, Michigan Realtors President, said, “This new law sets up the state’s first dedicated savings vehicle for a new home purchase. These accounts will help individuals and families achieve the dream of homeownership, retain our talented college graduates, and promote financial literacy and smart savings.”
The law allows for tax exemption for accounts that are used to save for and purchase a single-family residence. Michigan home buyers can claim up to $5,000 for a single return and $10,000 for a joint return.
The average price for a single-family home is over $200,000 in Michigan.
Reporting for WGRT – Jennie McClelland
