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MI HB4747

MI HB4747
Individual income tax: deductions; deduction for contributions made to any 529 education savings plan; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).


summary

Introduced
07/29/2025
In Committee
10/23/2025
Crossed Over
10/21/2025
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1967 PA 281, entitled"Income tax act of 1967,"by amending section 30 (MCL 206.30), as amended by 2025 PA 24.

AI Summary

This bill amends Michigan's income tax law to expand tax deductions for contributions to 529 education savings plans. Specifically, beginning January 1, 2026, taxpayers will be able to deduct contributions made to 529 education savings plans established by other states, in addition to the existing deduction for contributions to Michigan's education savings program. The deduction will be limited to $5,000 for single tax returns and $10,000 for joint returns per tax year. The bill also includes provisions for handling non-qualified withdrawals from these plans, requiring taxpayers to add back to their taxable income any withdrawals that do not meet qualified withdrawal criteria or are subject to penalties. This change aims to provide Michigan taxpayers with more flexibility in saving for education expenses by allowing deductions for out-of-state 529 plan contributions, while maintaining existing safeguards to ensure the tax benefit is used appropriately for educational purposes.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Referred To Committee On Finance, Insurance, And Consumer Protection (on 10/23/2025)

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