MI SB0512

Adds a new deduction for first-time home buyer savings account contributions of up to $5,000 annually for single returns or $10,000 for joint returns, beginning with tax years after December 31, 2018.

Allows deduction of interest earned on first-time home buyer savings account contributions and qualified withdrawals from such accounts for designated beneficiaries.

Requires taxpayers to add back to income any non-qualified withdrawals from first-time home buyer savings accounts, except for amounts representing previously non-deducted contributions.

Limits the first-time home buyer savings account deduction to a maximum of 20 tax years per taxpayer.

Increases the personal exemption by $600 for tax years beginning in 2022 and thereafter, in addition to existing Consumer Price Index adjustments.