Individual income tax: other; first-time home buyer savings program; extend sunset. Amends sec. 5 of 2022 PA 6 (MCL 565.1005). TIE BAR WITH: HB 5973'26

2025-2026 Regular Session Introduced by Greg Alexander and 17 co-sponsors

The bill would extend and clarify Michigan’s First-Time Home Buyer Savings Program, allowing accounts through 2031 with defined beneficiary rules, joint ownership, and third-party

bill electronically reproduced 05/13/2026

#housing:other #individualincometax:other

Summary of HB 5967 (Michigan, 2025-2026)

Purpose and intent

HB 5967 proposes amendments to the Michigan First-Time Home Buyer Savings Program (established under 2022 Public Act 6) to extend and modify the program’s operation.

The bill ties into HB 5973; enactment of HB 5967 is conditional on HB 5973 becoming law.

Key provisions and changes

Establishment and governance

The First-Time Home Buyer Savings Program would be established in the Department, with powers and duties vested in the State Treasurer or the Treasurer’s designee.

Eligible time frame for account opening

From January 1, 2022 through December 31, 2026, and extending through December 31, 2031, individuals may open a first-time home buyer savings account at a financial institution.
Accounts designated as first-time home buyer savings accounts can be used to pay or reimburse eligible costs for purchasing a single-family residence in Michigan.

Beneficiary designation

The account holder must designate a first-time home buyer as the qualified beneficiary.
The account holder may designate themselves as the qualified beneficiary and may change the designation at any time.
There may not be more than one qualified beneficiary at any given time.

Joint ownership and multiple accounts

An individual may jointly own a first-time home buyer savings account with another person if they file a joint tax return under Michigan’s income tax act.
An account holder may own more than one first-time home buyer savings account, but cannot designate the same qualified beneficiary across multiple accounts.
A single person may be designated as the qualified beneficiary on more than one account.

Contributions

Only cash and marketable securities may be contributed to the account.
Unless otherwise limited by section 11, persons other than the account holder may contribute to the account.

Effective date

The bill’s amendments take effect only if HB 5973 (another bill in the same legislative package) is enacted into law.

Who is affected

Potential account holders: individuals saving for a first home in Michigan, with the option to designate a qualified beneficiary and to designate themselves.

Joint filers: eligible for joint ownership of accounts if they file a joint Michigan income tax return.

Non-account holders and contributors: third parties could contribute to accounts (subject to constraints).

Financial institutions: would administer and hold the accounts, under Treasury supervision.

Procedural and timeline notes

These provisions are contingent on the enactment of HB 5973.

The program’s formal operation proceeds within the stated window for opening accounts (2022–2031), with ongoing governance by the Treasurer's office.

The measure lists a broad sponsor and multiple co-sponsors, indicating cross-chamber or cross-aisle support.

Practical impact

If enacted, the bill would extend the window for establishing first-time home buyer savings accounts through 2031 and clarify ownership, beneficiary designations, and contributions.

The program remains designed to help individuals save toward eligible housing costs for purchasing a single-family home in Michigan.

The emphasis on cash and marketable securities, and the possibility of third-party contributions, shapes how accounts would be funded and managed.

If you’d like, I can extract a plain-language FAQ or provide a side-by-side comparison with the existing 2022 act to highlight all substantive differences.