MI SB1165

Establishes the Michigan Parental Choice in Education Program administered by the Department of Treasury to provide education savings accounts for parents of students enrolled in public schools.

Requires parents to open education savings accounts beginning with the 2017-2018 school year for each dependent student; accounts can be funded by individuals, entities, and school tax levies to pay for eligible services at public schools.

Authorizes the state treasurer to select program managers through a competitive process to invest account funds, charge administrative fees not exceeding 2.0% of average daily net assets, and provide account management services.

Designates instructional services, supplemental services, back office services, and extracurricular services offered by public schools as "eligible services" that may be purchased using education savings account funds.

Exempts contributions, interest earned, and qualified withdrawals from education savings accounts from Michigan income taxation under the Income Tax Act of 1967.