MS HB1574

Authorizes individual taxpayers to establish first-time home buyer savings accounts with financial institutions, with account holder responsible for proper use and documentation of funds for eligible home purchase costs.

Excludes contributions to accounts, interest earned, and distributions used for down payments and allowable closing costs on single-family residences from Mississippi gross income for state income tax purposes.

Limits maximum contributions to $50,000 per account and total account balance to $150,000; restricts accounts to cash and marketable securities only.

Requires 5% penalty on non-qualified withdrawals added to gross income, except for withdrawals due to qualified beneficiary death, disability, bankruptcy, or transfers to other eligible accounts.

Effective for taxable year 2015 and thereafter; requires Department of Revenue to promulgate implementing rules but exempts financial institutions from reporting or administrative obligations related to the accounts.