Individual income tax: exemptions; broadband expansion grants; exempt from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).

This bill amends Michigan's income tax law to clarify how certain types of income and deductions are calculated for individual taxpayers. It specifically adjusts the definition of taxable income by adding back interest from out-of-state bonds and taxes paid to other jurisdictions while simultaneously allowing deductions for military retirement benefits, Social Security, and contributions to state education tuition programs. The legislation also updates the maximum deduction limits for other retirement and pension income, ensuring these amounts are adjusted annually based on inflation. These changes directly affect Michigan residents filing state income tax returns by modifying the final amount of income subject to taxation.