Individual income tax: other; definition of internal revenue code under the MiABLE program; update. Amends sec. 2 of 2015 PA 160 (MCL 206.982).
Impact
The passage of HB 5781 strengthens the ABLE program by clarifying account structure, which may increase participation in the savings program among Michigan residents with disabilities. This alignment with federal standards will likely enhance the appeal of Michigan's ABLE program, allowing eligible individuals to leverage the benefits of tax-advantaged savings specifically designated for disability-related expenses. Moreover, it establishes a framework for the Department of Treasury to manage these accounts more effectively, potentially leading to improved accountability and transparency in the handling of funds.
Summary
House Bill 5781 is a legislative act aimed to amend the existing provisions of the Michigan Achieving a Better Life Experience (ABLE) program, specifically focusing on updating the definition of the Internal Revenue Code (IRC) as applicable to ABLE accounts. This amendment is intended to allow for more precise alignment with federal guidelines, facilitating better oversight and management of these accounts which are designed to support individuals with disabilities by enabling them to save for qualified expenses without jeopardizing their eligibility for means-tested benefits.
Sentiment
Overall, the sentiment expressed regarding HB 5781 appears to be largely positive, with support from advocacy groups for individuals with disabilities, who view the amendments as a necessary evolution in policy that will provide enhanced financial support and options to beneficiaries. Legislators demonstrated a unifying consensus, with the bill passing through voting with significant bipartisan support, underscoring its importance to the community it aims to serve.
Contention
While there were no major points of contention observed during discussions surrounding HB 5781, some concerns were raised about the administrative implications associated with implementing the new definitions and management protocols. Questions regarding the potential added responsibilities for state departments and the burden of ensuring compliance with updated IRC standards were briefly discussed, although these did not appear to significantly detract from the overall support for the bill.
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Education: other; definition of qualified higher education expenses under Michigan education savings program; expand to include certain K-12 tuition expenses. Amends sec. 2 of 2000 PA 161 (MCL 390.1472).
Individual income tax: deductions; deduction for income attributable to bitcoin mining under the bitcoin program; provide for. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.). TIE BAR WITH: HB 4512'25
Individual income tax: exemptions; broadband expansion grants; exempt from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).
Individual income tax: deductions; certain broadband expansion grants; deduct from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).
Individual income tax: deductions; certain broadband expansion grants; deduct from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).
Education: other; definition of qualified higher education expenses under Michigan education savings program; expand to include certain K-12 tuition expenses. Amends sec. 2 of 2000 PA 161 (MCL 390.1472).
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
Individual income tax: other; qualified higher education expenses under the Michigan education savings program; conform with most recent federal modifications. Amends secs. 2 & 16 of 2000 PA 161 (MCL 390.1472 & 390.1486).
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).
Individual income tax: retirement or pension benefits; limitations and restrictions on deductions of certain retirement or pension benefits and revenue distribution to state school aid fund; revise. Amends secs. 30 & 51 of 1967 PA 281 (MCL 206.30 & 206.51).