HOUSE BILL No. 5654 April 18, 2000, Introduced by Reps. Shackleton, Mead, Birkholz, Allen, Van Woerkom and Gilbert and referred to the Committee on Tax Policy. A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.532) by adding section 30f. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 30F. FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 1999, 2 TAXABLE INCOME FOR PURPOSES OF THIS ACT EQUALS TAXABLE INCOME AS 3 DETERMINED UNDER SECTION 30 WITH THE FOLLOWING ADJUSTMENTS: 4 (A) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 1999, 5 DEDUCT, TO THE EXTENT NOT DEDUCTED IN DETERMINING ADJUSTED GROSS 6 INCOME, INTEREST EARNED IN THE TAX YEAR ON THE CONTRIBUTIONS TO 7 THE TAXPAYER'S EDUCATION SAVINGS ACCOUNTS IF THE CONTRIBUTIONS 8 WERE DEDUCTIBLE UNDER SECTION 30(1)(W)(i). 9 (B) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 1999, 10 DEDUCT, TO THE EXTENT INCLUDED IN ADJUSTED GROSS INCOME, 11 DISTRIBUTIONS THAT ARE QUALIFIED WITHDRAWALS FROM AN EDUCATION H01736'99 a RJA 2 1 SAVINGS ACCOUNT TO THE DESIGNATED BENEFICIARY OF THAT EDUCATION 2 SAVINGS ACCOUNT. AS USED IN THIS SUBDIVISION, "QUALIFIED 3 WITHDRAWAL" MEANS THAT TERM AS DEFINED IN THE MICHIGAN EDUCATION 4 SAVINGS PROGRAM ACT. 5 Enacting section 1. This amendatory act does not take 6 effect unless Senate Bill No. 599 of the 90th Legislature is 7 enacted into law. H01736'99 a Final page. RJA