EDUCATION SAVINGS ACCOUNTS - S.B. 600 (S-2): FLOOR ANALYSIS
Senate Bill 600 (Substitute S-2 as reported by the Committee of the Whole)
Sponsor: Senator Mike Rogers
Committee: Finance
CONTENT
The bill would amend the Income Tax Act to allow a taxpayer to deduct from taxable income contributions up to $5,000 per year ($10,000 for a joint return) to an education savings account, and the interest earned on the contributions. Further, the bill would allow a taxpayer to deduct the amount of a distribution from a qualified individual retirement account (IRA), if the distribution were used to pay qualified higher expenses.
The bill is tie-barred to Senate Bill 599, which would create the "Michigan Education Savings Program Act".
MCL 206.30 - Legislative Analyst: G. Towne
FISCAL IMPACT
Senate Bills 599 (S-2) and 600 (S-2) would reduce income tax revenue an estimated $6.7 million in FY 2000-01, and $8.2 million in FY 2001-02. This loss in revenue would reduce General Fund/General Purpose revenue an estimated $6.4 million in FY 2000-01 and $7.8 million in FY 2001-02, and School Aid Fund revenue would be reduced $0.3 million in FY 2000-01 and $0.4 million in FY 2001-02.
Date Completed: 5-3-00 - Fiscal Analyst: J. WortleyFloor\sb600 - Bill Analysis @ http://www.state.mi.us/sfa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.