Senate Bill 549 Summary

• Amends the Income Tax Act of 1967 to add deductions for contributions to enhanced Michigan education savings accounts beginning in 2018 tax year, limited to $5,000 for single returns and $10,000 for joint returns annually.

• Allows deduction of interest earned on contributions to enhanced Michigan education savings accounts and qualified withdrawals from these accounts for designated beneficiaries.

• Requires taxpayers to add back to income any non-qualified withdrawals from enhanced Michigan education savings accounts, subject to limitations based on prior contributions and deductions claimed.

• Contains technical corrections to existing deduction provisions, including changes to capitalize "Armed Forces" and "Subdivision" references and clarify treatment of oil and gas income eliminations.

• Includes a tie-bar provision making the bill effective only if Senate Bill 544 of the 99th Legislature is enacted into law.