SENATE BILL No. 894 - Summary

• Adds deduction for individuals in tax years beginning after December 31, 2015, allowing deduction of capital gains from sale or disposition of capital assets that are reinvested in the same tax year into a Michigan-based business meeting specified criteria (minimum $5,000 gross revenues, 80% operation in-state, 80% assets in-state, principal office in-state).

• Adds similar deduction for corporations for tax years beginning after December 31, 2015, allowing deduction of capital gains reinvested in qualifying Michigan businesses under identical criteria.

• Makes conforming amendments to section 623 regarding the corporate income tax base by adding reference to adjustments in both subsections (4) and (5) rather than subsection (4) alone, and renumbers provisions accordingly.

• Modifies language regarding ABLE savings accounts and education savings accounts to clarify deduction provisions for contributions and qualified withdrawals.