HB4056

Establishes a child care savings program in Michigan to allow tax-exempt savings accounts for child care expenses.

The bill creates a child care savings program in Michigan, allowing individuals to open savings accounts designated for child care expenses. Contributions and interest earned on these accounts are exempt from state income tax. Withdrawals used for eligible child care costs are also tax-exempt. The Department of Treasury is responsible for administering the program, while financial institutions are not required to track or allocate funds in these accounts. Penalties apply for non-qualified withdrawals, and account holders must maintain records for at least four years.