HB 5428 Summary

• Amends the Michigan Income Tax Act to allow taxpayers to deduct contributions made to enhanced Michigan education savings accounts, starting in the 2018 tax year.

• Permits a maximum deduction of $5,000 for single returns or $10,000 for joint returns per tax year for net contributions (contributions minus qualified withdrawals) from enhanced Michigan education savings accounts.

• Allows deduction of interest earned in the tax year on contributions to enhanced Michigan education savings accounts if the contributions were themselves deductible.

• Requires taxpayers to add back any non-qualified withdrawals from enhanced Michigan education savings accounts (up to the total amount previously deducted) to taxable income.

• Takes effect only if Senate Bill 544 of the 99th Legislature is enacted into law.