There’s excitement in the state of Mississippi, with the signing of HB 1601 into law late last month by Governor Phil Bryant.
According to the Star Herald, the law is helping lead the way to home ownership, by establishing a First-Time Home Buyer Savings Account, allowing Mississippi residents to create monetary savings accounts for down payments or other home purchase related expenses.
“With this law, more Mississippians will be able to invest in themselves and their communities,” said REALTORS President David Griffith.
“One of our priorities as REALTORS is to provide every Mississippian the opportunity to own a home. Through the leadership of Gov. Bryant, Speaker Philip Gunn and Lt. Gov. Tate Reeves, Mississippi has created a smoother path to home ownership.”
The new law allows individual state residents to deduct up to $2,500 from their state adjusted gross income annually, and couples filing jointly are able to deduct up to $5,000 annually from their state adjusted gross income.
Also exempt from state gross income is interest earned on the account. There is no cap on the aggregate amount that can be saved.
State representative Jeff Smith originally introduced the bill, which the state house passed unanimously, and the Senate passed it 51-1.
“On behalf of all Mississippians, Mississippi REALTORS would like to thank Ways and Means Chairman Jeff Smith, Finance Committee Chairman Joey Fillingane, Rep. Jason White and Sen. Barbara Blackmon for helping to make the dream of home ownership a reality,” said Griffith.
The law results in state projections indicating about 379 new homes being constructed to meet demand. The law goes into effect immediately, and state residents can begin taking the tax deduction in tax year 2018.
Eligible homes include manufactured, modular, existing homes, condo units or cooperatives. Account holders will be responsible for maintaining their funds in a separate account and reporting that to the Department of Revenue. Use of funds for unrelated items will result in a 10 percent penalty and all back taxes associated with the account.
Mississippi now joins Montana, Virginia, and Colorado as one of only four states to have a First-Time Home Buyer Savings Account program. The other three states passed similar laws in recent years. ##
(Image credits are as shown above.)
Submitted by RC Williams to the Daily Business News for MHProNews.
