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).

This bill updates Michigan's education savings program to align its tax rules with the most recent federal changes. It directly affects individuals and organizations who contribute to or withdraw funds from these state-approved savings accounts for higher education. The key provision expands what counts as a qualified expense to include costs for registered apprenticeships and interest payments on qualified education loans. Additionally, the bill clarifies that withdrawals used for these new purposes, as well as existing ones like scholarships or service academy attendance, remain free from state income tax penalties.