MI SB1168

Adds deduction for contributions to education savings accounts under the Michigan parental choice in education program for tax years beginning after December 31, 2016, limited to $5,000 for single returns and $10,000 for joint returns per tax year.

Allows deduction of interest earned on education savings account contributions that were themselves deductible under the new provision.

Permits deduction of qualified distributions (withdrawals) from education savings accounts to designated beneficiaries.

Requires taxpayers to add back non-qualified withdrawals from education savings accounts to taxable income, up to the amount of prior deductions claimed.

Makes conforming changes to existing education savings provisions, including updating references to the Michigan ABLE program act and clarifying language regarding dependent definitions.