Individual income tax: deductions; sunset on deductions for contributions to a first-time home buyer savings account; extend. Amends sec. 30 of 1967 PA 281 (MCL 206.30). TIE BAR WITH: HB 5967'26

2025-2026 Regular Session Introduced by Cam Cavitt

HB 5973 would sunset the current deduction for contributions to a first-time home buyer savings account from Michigan individual income tax.

bill electronically reproduced 05/13/2026

#individualincometax:deductions

Bill Summary: HB 5973 (Michigan) – 2025-2026 Session

Purpose and intent

HB 5973 proposes changes to Michigan’s individual income tax deductions related to contributions to a first-time home buyer savings account (FHSA). The bill would sunset (end) the current deduction for such contributions and extend or modify related provisions through a sunset mechanism. The measure is tied to HB 5967(26) (TIE BAR), indicating the two bills are intended to move together or be enacted as a package.

Key provisions (as implied by title and description)

Sunset of FHSA deduction: The bill would eliminate or terminate the existing deduction for contributions to a first-time home buyer savings account at a specified future date unless further action is taken. In effect, taxpayers would no longer receive a tax deduction for FHSA contributions after the sunset.

Impact on individual income tax filings: Taxpayers who currently benefit from FHSA contribution deductions would be affected once the sunset takes effect.

Potential extension or modification: While the title notes sunset, it also mentions extending the deduction, which could imply future legislative options to reauthorize or modify the deduction in another form or through adjustments. The exact mechanism (whether it fully sunsets or transitions to a modified deduction) would be clarified in the bill’s text and any amendments.

Who would be affected

Taxpayers contributing to an FHSA: Individuals who contribute to a first-time home buyer savings account would be affected by the loss of the deduction after the sunset date.

Household financial planning: Prospective first-time home buyers who anticipated the deduction as part of tax planning may need to adjust expectations and budgeting if/when the deduction sunsets.

State revenue/household budgeting: The sunset would have a revenue impact on the Michigan individual income tax base, potentially affecting state revenue projections and related budgetary planning.

Procedural and timeline aspects

Introduction and referral: Introduced May 13, 2026, by Rep. Cam Cavitt and co-sponsored by Rep. Cavitt.

Initial action: Referred to the Committee on Regulatory Reform for review.

Timeline: As a newly introduced bill, its path would involve committee consideration, potential amendments, and votes on passage in the House, followed by Senate consideration and potential signature by the governor. The precise sunset date and transitional provisions would be specified in the bill text.

Notes and considerations

The bill’s exact sunset date, transitional language, and any parallel changes to FHSA program administration would be essential to determine the practical impact on taxpayers.

The linkage (TIE BAR) with HB 5967(26) suggests coordinated action; readers should consult the companion bill to understand any additional or related tax or fiscal changes.

For a complete understanding, review the full legislative text, any fiscal impact statements, and committee amendments once available.