Unfortunately, our homes don’t always grow with us. What may have initially worked fine for a single person, a young couple’s starter home, or a family with a newborn can quickly become too
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MICHIGAN HOMEBUYER SAVINGS ACCOUNT PASSED SENATE COMMITTEE: The First-Time HomebuyerSavings Account legislation was unanimously approved and sent to the Senate Floor lastweek. Michigan REALTORS® thanks Senators Peter MacGregor (R-Rockford) & Ken Horn (R-Frankenmuth)for their strong sponsorship of this innovative legislation. These bills would create a new incentivized savingsvehicle to support homeownership rooted in Michigan, placing a focus on talent retention and smartsavings. The legislation would allow an account holder to begin saving for the purchase of a first-timeprinciple residence in Michigan, while receiving meaningful state income tax incentives to spur growth on thatsavings. Michigan REALTORS® sees very valuable uses for this savings vehicle:1. For the parent, grandparent, or guardian, the ability to begin saving to the benefit of a minor-dependenttowards their first-time home purchase rooted in Michigan;2. For the individual in high school, college, or beyond, that begins saving for themselves with the goal ofhomeownership rooted in Michigan;3. For the individual that has not owned a principal residence in the previous 3-years, whether due tofinancial hardship, foreclosure, or credit recovery, providing a new savings tool for homeownership.A First-Time Homebuyer Savings Account holder could receive up to 20-years of investment deductibility offthe account holder’s state income tax, while allowing the interest on the account to grow tax-free. Under thelegislation, the annual deductibility thresholds are up to $5,000 for a single tax return and $10,000 for a jointfiling.