MI SB0711

Adds a deduction under Section 30 of the income tax act for funds allocated during the tax year to SOS accounts for qualifying education expenses under the student opportunity scholarship program, effective for applicable tax years.

Creates a tax credit under new Section 279 allowing taxpayers to claim up to 100% of contributions made to scholarship-granting organizations participating in the student opportunity scholarship program for tax years beginning January 1, 2024 and after, subject to preapproval and a $500,000,000 annual cap.

Establishes an identical tax credit under new Section 679 with the same terms, limitations, and procedures as Section 279, combining with Section 279 for the $500,000,000 annual credit cap with an automatic 20% increase if prior year utilization reaches 90% or more.

Requires taxpayers to submit preapproval applications before making contributions, with the department processing applications within 10 business days and issuing preapproval letters that reserve credit amounts; contributions must be made within 15 business days or by June 30 of the fiscal year.

Allows unused credits to carry forward for 5 years and requires annual reporting to the legislature on program administration, including application numbers, credits authorized and claimed, SOS accounts opened, and awards by income level and student demographics.