Michigan House Bill HB5781

Michigan 2023-2024 Regular Session

• Introduced: 6/5/24
• Refer: 6/5/24
• Report Pass: 11/12/24
• Engrossed: 12/5/24
• Refer: 12/10/24
• Report Pass: 12/18/24

Caption

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.