MI HB5965

Creates the Michigan Home Ownership Savings Program administered by the Department of Treasury to allow individuals to establish tax-advantaged savings accounts for qualified home ownership expenses.

Authorizes the State Treasurer to contract with program managers to offer one or more savings plans with different investment strategies, with administrative fees capped at 2.0% of average daily net assets.

Sets maximum account balance limit at $100,000.00 and allows contributions via cash, check, money order, or credit card; accounts can be withdrawn with 30 days' notice.

Defines qualified withdrawals (for home purchase/improvement costs, death, disability, or management contract termination) as penalty-free; non-qualified withdrawals subject to up to 10% penalty paid to state general fund.

Exempts contributions and interest earned on home ownership savings accounts from Michigan income tax; withdrawals remain taxable unless they constitute qualified withdrawals under the program.