A bill to amend 2000 PA 161, entitled “Michigan education savings program act,” by amending sections 2 and 16 (MCL 390.1472 and 390.1486), section 2 as amended by 2010 PA 6.
House Bill No. 5783 aims to amend the Michigan Education Savings Program Act (2000 PA 161), specifically sections 2 and 16. The bill's primary goal is to update the definitions and conditions related to education savings accounts, including terms such as "account owner," "designated beneficiary," "eligible educational institution," and "qualified higher education expenses," to ensure alignment with federal regulations under section 529 of the Internal Revenue Code.
The legislation outlines the roles of the Michigan Education Trust Board, the Department of Treasury, and program managers in administering the savings program. It also specifies conditions under which withdrawals from education savings accounts are exempt from taxation, including in cases of death, disability, scholarships, or attendance at a service academy. This bill seeks to conform state law with the most recent federal modifications to the tax treatment of qualified higher education expenses under the Michigan education savings program.
Co-sponsored by Reps.
Referred to the Committee on Higher Education
