The bill amends the Michigan Education Savings Program Act by updating definitions and provisions related to education savings accounts. Key changes include the clarification of terms such as "account owner," which can now include individuals, government agencies, and certain corporations, as well as the definition of "qualified higher education expenses," which now explicitly includes expenses for apprenticeship programs, qualified education loans, and postsecondary credentialing expenses. Additionally, the bill modifies the definition of "member of the family" to align with the Internal Revenue Code and updates the reference year for the Internal Revenue Code from 2024 to 2026.

Furthermore, the bill introduces new provisions regarding qualified withdrawals from education savings accounts, detailing circumstances under which withdrawals can be made without incurring penalties or taxes. These circumstances include withdrawals for the designated beneficiary's qualified higher education expenses, in cases of death or disability, or when a beneficiary receives a scholarship. The bill aims to enhance the flexibility and utility of education savings accounts for Michigan residents, thereby promoting higher education accessibility.

Statutes affected:
House Introduced Bill: 390.1472