Concerns about being able to afford a responsible down payment often hold back prospective first-time homebuyers.

This is compounded by our state’s booming housing market. Although increasing property values are good for homeowners and local communities, they make it harder for young professionals and new families to afford to buy a house.

I was proud to recently support proactive measures to help residents save enough money to purchase their first house.

Under the legislation approved by the Senate Finance Committee, Michigan residents would be able to set up a savings account to help cover the costs of a first-time home purchase and would be able to receive a state income tax deduction for their contributions into the savings account.

Senate Bill 511 would create the Michigan First-time Home Buyer Savings Program. The legislation would enable an individual to open an account with a financial institution and designate it as a first-time homebuyer savings account.

Funds in the account could be used toward a down payment or allowable closing costs for a first-time home purchase in Michigan.

SB 512 would provide a state income tax deduction of up to $5,000 for a single return and $10,000 for a joint return for contributions made by the taxpayer into a first-time homebuyer savings account for up to 20 years.

If a withdrawal is made for a non-qualifying purpose — something other than a down payment or closing costs for a first home purchase — the withdrawn amount would be added to the taxpayer’s adjusted gross income.

These first-time homebuyer savings accounts would function similarly to education savings plans, which have proven to be extremely beneficial in helping Michigan families cover increasing costs of higher education.

I co-sponsored this initiative as part of a continued effort to promote smart homeownership, attract new talent and encourage new generations of Michigan residents to stay and grow roots in our state.

I look forward to working with my legislative colleagues to make this savings program a reality.

Sen. John Proos, R-St. Joseph, represents southwest Michigan.