Section 565.1001 – Short Title.

565.1001 Short title. Sec. 1. This act may be cited as the “Michigan first-time home buyer savings program act”. History: 2022, Act 6, Imd. Eff. Feb. 9, 2022

Section 565.1003 – Definitions.

565.1003 Definitions. Sec. 3. As used in this act: (a) “Account holder” means an individual who establishes, individually or jointly with 1 or more other individuals, an account with a financial institution for which the account holder claims a first-time home buyer savings account status on his or her income tax return. (b) “Allowable closing […]

Section 565.1005 – First-Time Home Buyer Savings Program; Establishment; Savings Account Designation; Form of Contribution.

565.1005 First-time home buyer savings program; establishment; savings account designation; form of contribution. Sec. 5. (1) The first-time home buyer savings program is established in the department. The purposes, powers, and duties of the first-time home buyer savings program are vested in and shall be exercised by the treasurer or the designee of the treasurer. […]

Section 565.1007 – Account Holder Responsibilities; Use of Funds; Filing With Department; Maintenance and Retention of Records; Rules; Deduction Under MCL 206.30; Informational Materials.

565.1007 Account holder responsibilities; use of funds; filing with department; maintenance and retention of records; rules; deduction under MCL 206.30; informational materials. Sec. 7. (1) The account holder is responsible for the use or application of funds in a first-time home buyer savings account. The account holder shall not use funds held in an account […]

Section 565.1009 – Financial Institution Duties and Responsibilities.

565.1009 Financial institution duties and responsibilities. Sec. 9. (1) A financial institution is not required to do any of the following: (a) Designate an account as a first-time home buyer savings account, or designate the qualified beneficiaries of an account, in the financial institution’s account contracts or systems or in any other way. (b) Track […]

Section 565.1011 – Maximum Account Balance Limit; Contributions, Interest Earned, and Qualified Withdrawals as Tax Exempt.

565.1011 Maximum account balance limit; contributions, interest earned, and qualified withdrawals as tax exempt. Sec. 11. (1) The maximum account balance limit for a first-time home buyer savings account shall not exceed a maximum of $50,000.00. Accounts may continue to accrue earnings if the total balance has reached the maximum account balance limit and shall […]

Section 565.1013 – Improper Use of Funds; Penalties; Exceptions; Definitions.

565.1013 Improper use of funds; penalties; exceptions; definitions. Sec. 13. (1) If funds are withdrawn from an account for any purpose other than the payment of eligible costs by or on behalf of a qualified beneficiary, there is a penalty equal to 10% of the amount withdrawn. The penalty shall be paid to the department. […]