The Michigan House of Representatives on Tuesday unanimously passed a bill that should allow more investment in tuition savings programs allowed under the Michigan Education Trust (MET) and the Education Savings Program (MESP).
The bill, HB 6471, will allow individuals, corporations, non-profits and municipalities to open tax-free tuition savings accounts without specifically naming a beneficiary. This paves the way for those who purchase blocks of MESP contracts to get a tax break for doing so without naming a specific beneficiary, which will allow organizations and individuals to set up tuition scholarships through the MET for a block of students from a particular school or community without knowing in advance who will qualify for the scholarships.
In a press release from House Democrats, Rep. Steve Lindberg (D-Marquette), a sponsor of the bill, said, “Clearing the way for donors to help more students attend college will not only help individual young people and their families, but will help our state as a whole.”
Rep. Rebekah Warren (D-Ann Arbor) agreed, saying, “There are a lot of generous people in Michigan, and this plan will put that generosity to work by helping to provide more young people with the invaluable opportunity to get a college education.”
The bill now moves to the Senate for consideration as the state legislature scrambles in the current lame duck session to finalize items on the agenda.