2021 Senate Bill 145 / 2022 Public Act 6

Give tax breaks to some home buyers

Introduced in the Senate

Feb. 18, 2021

Introduced by Sen. Ken Horn (R-32)

To exempt from state income tax up to $5,000, and $10,000 on joint returns, that is deposited in a specialty savings account the bill would authorize for individuals who have not bought or owned a Michigan home in the past three years (dubbed by the bill a "first time home buyer"). Up to $50,000 could be exempted from state income tax liability by an account owner over time. A version of this proposal was vetoed by Gov. Rick Snyder in 2018.

Referred to the Committee on Finance

March 25, 2021

Reported without amendment

With the recommendation that the bill pass.

April 22, 2021

Passed in the Senate 31 to 3 (details)

To grant $5,000 state income tax exemptions, and $10,000 on joint returns, if the money is deposited in a specialty savings account the bill would authorize for individuals who have not bought or owned a Michigan home in the past three years (labeled as "first time home buyers"). The exemptions could be claimed for up to five years, meaning $50,000 could be exempted from state income tax liability over time by certain individuals. Legislative fiscal agency analysts estimate the bill will provide up to $19.8 million in benefits for these individuals, with an equivalent amount of revenue foregone by the state. A version of this proposal was vetoed by Republican Gov. Rick Snyder in 2018. See also House Bill 4290.

Received in the House

April 22, 2021

Referred to the Committee on Tax Policy

Oct. 13, 2021

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

Nov. 9, 2021

Substitute offered by Rep. Matt Hall (R-63)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Jan. 26, 2022

Passed in the House 86 to 16 (details)

To grant $5,000 state income tax exemptions, and $10,000 on joint returns, if the money is deposited in a specialty savings account the bill would authorize for individuals who have not bought or owned a Michigan home in the past three years (labeled as "first time home buyers"). The exemptions could be claimed for up to five years, meaning $50,000 could be exempted from state income tax liability over time by certain individuals. Legislative fiscal agency analysts estimate the bill will provide up to $19.8 million in benefits for these individuals, with an equivalent amount of revenue foregone by the state. A version of this proposal was vetoed by Republican Gov. Rick Snyder in 2018. See also House Bill 4290.

Received in the Senate

Jan. 27, 2022

Passed in the Senate 36 to 1 (details)

Signed by Gov. Gretchen Whitmer

Feb. 9, 2022