Individual income tax: deductions; deduct overtime compensation from taxable income; provide for. Amends secs. 30, 701, 703 & 711 of 1967 PA 281 (MCL 206.30 et seq.).

SB 125 amends Michigan's income tax code (sections 30(f)(iv) and related provisions) to adjust how retirement benefit deduction limits are calculated. It changes the annual adjustment formula for the maximum deductible retirement income ($42,240 for single filers, $84,480 for joint filers) to tie directly to the U.S. Consumer Price Index, replacing previous methods. This affects Michigan taxpayers claiming retirement income deductions, including those receiving National Guard benefits (already deductible under section 30(e)(iii)). The bill updates the existing deduction mechanism without creating new benefits or altering eligibility.