Individual income tax: deductions; deduction from taxable income for distributions from a baby bond trust account for eligible expenditures; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 6081 amends Michigan's state income tax law to allow taxpayers to deduct distributions from baby bond trust accounts when those funds are used for eligible education expenses. This change directly affects individuals who have invested in Michigan's 529 college savings plans and are using the money to pay for tuition or other qualified costs. The bill modifies the existing tax code by adding a specific line item that reduces taxable income by the amount of these distributions, effectively providing a tax benefit for utilizing the savings. By aligning the treatment of baby bond withdrawals with other education-related deductions, the legislation aims to simplify the tax process for families saving for higher education.