HB 5188 Summary

• Adds new deduction for taxpayers with disabilities and foster parents of service animals to deduct the cost, care, and maintenance of service animals issued identification under 2015 PA 146 for tax years beginning after December 31, 2017.

• Allows taxpayers to deduct contributions to ABLE savings accounts (up to $5,000 for single returns, $10,000 for joint returns) and interest earned on those contributions for tax years beginning after December 31, 2015.

• Permits deduction of qualified withdrawals from ABLE savings accounts and allows taxation of non-qualified withdrawals to prevent double tax benefits.

• Makes various technical corrections and clarifications to existing income tax deductions and exemptions, including adjustments to language regarding Armed Forces compensation and pension benefits.

• Maintains existing deductions for retirement and pension benefits, education savings accounts, Holocaust victim settlements, and other specified income adjustments under Michigan income tax law.