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Michigan Enacts First-Time Home Buyer Income Tax Provisions

By: Wayne D. Roberts, Member, and Emily J. Kwolek, Member, Tax Law Group


On February 9, 2022, Michigan Governor Gretchen Whitmer signed a law amending the Michigan Income Tax Act to allow a new deduction for contributions to certain “first-time home buyer” savings accounts.


The law includes provisions that create a new first-time home buyer savings account structure and to allow annual income tax deductions for: 1) contributions to a first-time home buyer savings account up to $5,000 for a single return/$10,000 for a join return; 2) interest earned on contributions to a first-time home buyer savings account (to the extent included in federal AGI) and 3) qualified withdrawals from the first-time home buyer savings account. An individual may open and contribute to a first-time home buyer savings account for the benefit of a first-time home buyer. The law took effect February 9, 2022 and applies to the tax years beginning January 1, 2022 through December 31, 2026. A link to the full text of H.B. 4290 (enacted 02/09/22) can be found here. See MCL 206.30(1)(cc) here.

If you would like assistance in this analysis or have questions, please don’t hesitate to contact your Bodman Tax attorney or Wayne Roberts or Emily Kowlek of Bodman’s Tax Group. Bodman cannot respond to your questions or receive information from you without first clearing potential conflicts with other clients. Thank you for your patience and understanding.

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