Legislator guided landmark proposals through House Tax Policy Committee

State Rep. Matt Hall today said new laws will remove barriers for those looking to fulfill their dreams of owning a home.

The recently signed House Bill 4290 and Senate Bill 145 create tax-exempt saving accounts and allow Michiganders to deduct contributions from their taxes through the First-Time Home Buyer Savings Program. The accounts may be used to pay for down payments and closing costs of a single-family home purchase.

“There are many challenges for people who are looking to own a home. A major one I hear about from people in our communities is cost, and this allows people to save as they are looking to buy their first home for themselves and their families,” said Hall, of Marshall. “A big part of our state’s future is ensuring we can attract and retain those who are starting their careers. Having an affordable place to live is a massive part of that equation. These new laws will ease this burden while continuing to grow our state and local economies.”

Hall, who chairs the House Tax Policy Committee, helped advance the legislation to the House floor in March and voted to approve the plans in April.

“This has been a priority for the state for years. It was a priority for our committee and something we wanted to tackle early in this term, and I’m pleased we were able to get this done,” Hall said.

The plans allow for a deduction up to $5,000 annually for a single tax return and $10,000 for a joint return for contributions to accounts. Interest earned on an account may also be deducted.

Hall noted the massive impact the new laws will have particularly on younger people. According to the National Association of Realtors, 31 percent of homes are bought by first-time buyers – and the median age of those first-time buyers is 33. Hall said the program will encourage younger adults to invest in ownership at earlier ages.