Bill > SB0911

This bill amends Michigan's Income Tax Act of 1967 to introduce a new deduction for contributions made to "Trump Accounts," which are defined by a section of the Internal Revenue Code (IRC) related to education savings. Specifically, for tax years beginning on or after January 1, 2026, taxpayers can deduct contributions made to a Trump Account, up to a maximum of $5,000 per year, for any tax year before the calendar year in which the account beneficiary turns 18. The bill also establishes the "Michigan Trump Account Contribution Fund" within the state treasury, which will be funded by $100 million annually from revenue collected under the Income Tax Act for the 2026-2027 through 2028-2029 state fiscal years. The state treasurer will manage this fund, and the Department of Treasury will administer it, making matching contributions to eligible children's Trump Accounts. An eligible child is defined by another section of the IRC related to education savings, and the matching contribution will be equal to the taxpayer's contribution or $1,000, whichever is less, provided the child was born and resides in Michigan. The bill also makes adjustments to other deductions, such as increasing the maximum deduction for certain retirement and pension benefits and for senior citizens' interest, dividends, and capital gains.