Mich. Comp. Laws § 565.1001
Short title.
This act may be cited as the "Michigan first-time home buyer savings program act".
Michigan Compiled Laws — MICHIGAN FIRST-TIME HOME BUYER SAVINGS PROGRAM ACT (Act 6 of 2022)
Michigan · statute · 6 of 2022, Mich. Comp. Laws · 7 active provisions
Mich. Comp. Laws § 565.1003
Definitions.
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 cost…
Mich. Comp. Laws § 565.1005
First-time home buyer savings program; establishment; savings account designation; form of contribution.
(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. (2) Beginning January 1, 2022 through December 31, 2026, any individual ma…
Mich. Comp. Laws § 565.1007
Account holder responsibilities; use of funds; filing with department; maintenance and retention of records; rules; deduction under MCL 206.30; informational materials.
(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 to pay expenses of administering the account, except that a service fee may be deducted from the account by a financial institution in which the…
Mich. Comp. Laws § 565.1009
Financial institution duties and responsibilities.
(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 (b) Track the use of money withdrawn from…
Mich. Comp. Laws § 565.1011
Maximum account balance limit; contributions, interest earned, and qualified withdrawals as tax exempt.
(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 not be considered to have exceeded the maximum account balance limit under thi…
Mich. Comp. Laws § 565.1013
Improper use of funds; penalties; exceptions; definitions.
(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. (2) The penalty does not apply if the funds withdrawn satisfy any of the f…