On Tuesday, Governor Mark Dayton signed HF 1, the Omnibus Tax Bill, into law. Included in this was a provision for the creation of the First-Time Homebuyer Savings Account. This was the leading proposal of BATC’s and Minnesota REALTOR’s Homeownership Initiative.
The Law Does the Following:
Individuals can deposit money annually into a FDIC-insured savings account.
The account can be opened at any Minnesota bank or credit union.
Contributions to the account would receive a state tax deduction on interest earned. Individuals can deposit up to $14,000 annually while married joint filers can deposit up to $28,000 per year.
Parents or grandparents could set up an account AND receive a deduction from their own state taxes.
The plan applies to first time homebuyers and those re-entering the housing market, if they have not owned a home within three years.
Effective for taxable years beginning after December 31, 2016.
As Housing First Minnesota's Director of Legislative and Political Affairs, Mark Foster, is your contact for grassroots political, policy, and legislative activity. Follow Mark on Twitter @robmarkfoster