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2021 Senate Bill 145: Give tax breaks to some home buyers

Public Act 6 of 2022

Introduced by Sen. Kenneth Horn (R) on February 18, 2021
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.   Official Text and Analysis.
Referred to the Senate Finance Committee on February 18, 2021
Reported in the Senate on March 25, 2021
With the recommendation that the bill pass.
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 on April 22, 2021
Referred to the House Tax Policy Committee on April 22, 2021
Reported in the House on October 13, 2021
With the recommendation that the substitute (H-3) be adopted and that the bill then pass.
Substitute offered by Rep. Matt Hall (R) on November 9, 2021
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 in the House on November 9, 2021
Received in the Senate on January 27, 2022
Signed by Gov. Gretchen Whitmer on February 9, 2022

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