HB 4775 Summary

• Expands Michigan's education savings deduction to include contributions to qualified tuition programs (529 plans) in any state, effective January 1, 2018, in addition to existing Michigan education savings accounts.

• Increases the annual deduction limit for education savings contributions from $5,000 (single) / $10,000 (joint) to allow deductions under the broader 529 plan provisions while maintaining the same per-account calculation methodology.

• Allows taxpayers to deduct interest earned on education savings account contributions and qualified withdrawals from education savings accounts to designated beneficiaries.

• Repeals section 30f of the Income Tax Act of 1967, consolidating education savings deduction provisions into section 30.

• Makes technical corrections to existing provisions regarding deductions for armed forces compensation, retirement/pension benefits, Holocaust victim settlements, ABLE savings accounts, and oil and gas income adjustments.