The plan proved to be largely successful. Within four years over 50,000 Michigan citizens had enrolled in MET. Inspired by this, additional states decided to launch their own version of the program. In 1990 Michigan was able to alleviate even more of the financial burden for those who participated by winning a suit against the IRS to make the program tax-exempt.
This win led to a widespread bipartisan effort to have the tax-exempt status be applied to all college savings plans and qualified state tuition programs. This was achieved in 1996 with the passing of the Small Business Protection Act. Congress added Section 529 to the Internal Revenue Code and thus the 529 Plan was born.