MI SB0145

Establishes the Michigan First-Time Home Buyer Savings Program allowing individuals to open designated savings accounts with financial institutions from January 1, 2022 through December 31, 2026 to save for down payments and closing costs on a single-family residence in Michigan.

Permits account holders to designate a first-time home buyer (someone who has not owned a home in the prior 3 years) as a qualified beneficiary and allows contributions of cash and marketable securities up to a maximum account balance of $50,000.

Provides tax exemptions for contributions, interest earned, and qualified withdrawals made at least 1 year after account opening and used for eligible homebuying costs, with account holders claiming deductions on their state income tax returns.

Imposes a 10% penalty on non-qualified withdrawals, with exceptions for death, disability, bankruptcy, hardship withdrawals, and military service members transferred out of state, and requires account holders to maintain records for 4 years.

Exempts financial institutions from tracking account usage, verifying eligible costs, or reporting to the state beyond normal requirements, with responsibility for proper use placed on the account holder.