By Brad Tregnago of KSSZ
State Senator Caleb Rowden (R-Columbia) says a tax deduction he’s proposing would make home buying more affordable. A Senate committee is considering his First-Time Home Buyer Savings Account Act.
“There’s a lot of statistics and studies out there right now that talk about a really substantive decline in home ownership and there’s any number of reasons for it. I think the millennial group is coming out of college with so much college debt,” says Rowden. “It’s not a realistic assumption more times than not that they’re going to have a chance to buy a home anytime soon. I think if we can do things that at least give them a chance, at least give them an opportunity.”
He wants to let individuals or couples filing jointly open a special savings account and deduct 50% of what is put into it.
“Somebody puts in $10,000 into a savings account that can be used for closing costs or any of the other things involved with buying a home for the first time, then you can get a $5,000 tax deduction,” says Rowden.
The state’s cost would be about $1 million annually.
“I think there’s a huge value to a community when homes are going up and when homes are being bought,” says Rowden.
If the legislation passes, the program would begin in January.