{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/36-174.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/36-174.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/36-174.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/36-174.html"}],"law_id":75675,"edition_id":1,"section_id":75675,"structure_id":16198,"section_number":"36-174","catch_line":"Withdrawal of funds from account for purposes other than eligible costs for first-time home purchase","history":"2014, c. 729, \u00a7 55-558; 2017, c. 444; 2019, c. 712.","full_text":"If moneys or funds are withdrawn from an account for any purpose other than the payment of eligible costs by or on behalf of a qualified beneficiary, there shall be imposed a penalty calculated using the Form 1099 showing the amount of income exempted from state income tax, and a five percent penalty shall be assessed on the amount of exempted income. The penalty shall be paid to the Department of Taxation. In addition, as provided under subdivision 25 of \u00a7 58.1-322.02, the account holder shall also be subject to recapture of income that was subtracted pursuant to that subdivision.\n\t\tSuch five percent penalty shall not apply to, and there shall be no recapture of income with regard to, the extent of moneys or funds withdrawn that were (i) withdrawn by reason of the qualified beneficiary’s death or disability; (ii) a disbursement of assets of the account pursuant to a filing for protection under the United States Bankruptcy Code, 11 U.S.C. \u00a7\u00a7 101 through 1330; or (iii) transferred from an account established pursuant to this chapter into another account established pursuant to this chapter for the benefit of another qualified beneficiary.","order_by":null,"text":{"0":{"id":271783,"text":"If moneys or funds are withdrawn from an account for any purpose other than the payment of eligible costs by or on behalf of a qualified beneficiary, there shall be imposed a penalty calculated using the Form 1099 showing the amount of income exempted from state income tax, and a five percent penalty shall be assessed on the amount of exempted income. The penalty shall be paid to the Department of Taxation. In addition, as provided under subdivision 25 of \u00a7 58.1-322.02, the account holder shall also be subject to recapture of income that was subtracted pursuant to that subdivision.\n\t\tSuch five percent penalty shall not apply to, and there shall be no recapture of income with regard to, the extent of moneys or funds withdrawn that were (i) withdrawn by reason of the qualified beneficiary’s death or disability; (ii) a disbursement of assets of the account pursuant to a filing for protection under the United States Bankruptcy Code, 11 U.S.C. \u00a7\u00a7 101 through 1330; or (iii) transferred from an account established pursuant to this chapter into another account established pursuant to this chapter for the benefit of another qualified beneficiary.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":16198,"edition_id":1,"name":"First-Time Home Buyer Savings Plan Act","identifier":"12","label":"chapter","depth":2,"order_by":1,"parent_id":12779,"metadata":{},"date_created":"2026-06-26 04:08:48","date_modified":"2026-06-26 04:08:48","permalink":{"id":208911,"object_type":"structure","relational_id":16198,"identifier":"12","token":"36\/12","url":"\/36\/12\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12779,"edition_id":1,"name":"Housing","identifier":"36","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":208257,"object_type":"structure","relational_id":12779,"identifier":"36","token":"36","url":"\/36\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78722,"structure_id":16198,"section_number":"36-171","catch_line":"Definitions","url":"\/36-171\/","token":"36\/12\/36-171","metadata":false},{"id":75176,"structure_id":16198,"section_number":"36-172","catch_line":"Claiming first-time home buyer status","url":"\/36-172\/","token":"36\/12\/36-172","metadata":false},{"id":87170,"structure_id":16198,"section_number":"36-173","catch_line":"Tax exemption; conditions","url":"\/36-173\/","token":"36\/12\/36-173","metadata":false},{"id":75675,"structure_id":16198,"section_number":"36-174","catch_line":"Withdrawal of funds from account for purposes other than eligible costs for first-time home purchase","url":"\/36-174\/","token":"36\/12\/36-174","metadata":false},{"id":64705,"structure_id":16198,"section_number":"36-175","catch_line":"False claims prohibited; penalty","url":"\/36-175\/","token":"36\/12\/36-175","metadata":false}],"previous_section":{"id":87170,"structure_id":16198,"section_number":"36-173","catch_line":"Tax exemption; conditions","url":"\/36-173\/","token":"36\/12\/36-173","metadata":false},"next_section":{"id":64705,"structure_id":16198,"section_number":"36-175","catch_line":"False claims prohibited; penalty","url":"\/36-175\/","token":"36\/12\/36-175","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/36-174\/","history_text":"

This law was first created in 2014. The record of its establishment is cataloged in chapter 729<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2017, chapter 444<\/a>; in 2019, chapter 712<\/a>.<\/p>","references":[{"id":81784,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","order_by":null,"url":"\/58.1-322.02\/"}],"refers_to":[{"id":81784,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","order_by":null,"url":"\/58.1-322.02\/"}],"permalink":{"id":208925,"object_type":"law","relational_id":75675,"identifier":"36-174","token":"36\/12\/36-174","url":"\/36-174\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/36-174\/","token":"36\/12\/36-174","dublin_core":{"Title":"Withdrawal of funds from account for purposes other than eligible costs for first-time home purchase","Type":"Text","Format":"text\/html","Identifier":"\u00a7 36-174","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

If moneys or funds are withdrawn from an account for any purpose other than the payment of eligible costs<\/span> by or on behalf of a qualified beneficiary<\/span>, there shall be imposed a penalty<\/span> calculated using the Form 1099 showing the amount of income exempted from state income tax, and a five percent penalty<\/span> shall be assessed on the amount of exempted income. The penalty<\/span> shall be paid to the Department of Taxation. In addition, as provided under subdivision 25 of \u00a7 58.1-322.02<\/a>, the account holder<\/span> shall also be subject to recapture of income that was subtracted pursuant to that subdivision.\n\t\tSuch five percent penalty<\/span> shall not apply to, and there shall be no recapture of income with regard to, the extent of moneys or funds withdrawn that were (i) withdrawn by reason of the qualified beneficiary<\/span>’s death or disability; (ii) a disbursement of assets<\/span> of the account pursuant to a filing for protection under the United States Bankruptcy Code<\/span>, 11 U.S.C. \u00a7\u00a7 101 through 1330; or (iii) transferred from an account established pursuant to this chapter into another account established pursuant to this chapter for the benefit of another qualified beneficiary<\/span>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWITHDRAWAL OF FUNDS FROM ACCOUNT FOR PURPOSES OTHER THAN ELIGIBLE COSTS FOR\nFIRST-TIME HOME PURCHASE (\u00a7 36-174)\n\nIf moneys or funds are withdrawn from an account for any purpose other than the\npayment of eligible costs by or on behalf of a qualified beneficiary, there\nshall be imposed a penalty calculated using the Form 1099 showing the amount of\nincome exempted from state income tax, and a five percent penalty shall be\nassessed on the amount of exempted income. The penalty shall be paid to the\nDepartment of Taxation. In addition, as provided under subdivision 25 of \u00a7\n58.1-322.02, the account holder shall also be subject to recapture of income\nthat was subtracted pursuant to that subdivision.\n\t\tSuch five percent penalty shall not apply to, and there shall be no recapture\nof income with regard to, the extent of moneys or funds withdrawn that were (i)\nwithdrawn by reason of the qualified beneficiary’s death or disability;\n(ii) a disbursement of assets of the account pursuant to a filing for protection\nunder the United States Bankruptcy Code, 11 U.S.C. \u00a7\u00a7 101 through 1330; or\n(iii) transferred from an account established pursuant to this chapter into\nanother account established pursuant to this chapter for the benefit of another\nqualified beneficiary.\n\nHISTORY: 2014, c. 729, \u00a7 55-558; 2017, c. 444; 2019, c. 712.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}