HB 4825 would create a tax credit for businesses that sell beverages in returnable containers (like soda cans or bottles), allowing them to deduct $0.005 per container sold from their Michigan corporate income tax starting in 2026. The credit amount would automatically increase each year based on inflation (using the U.S. Consumer Price Index) beginning in 2027. To claim the credit, businesses must attach a specific report (required under existing law) with their annual tax return. This policy directly affects beverage distributors who manage deposit systems for returnable containers, reducing their tax liability or generating refunds if the credit exceeds their tax bill.
HB 5118 would create a Michigan income tax credit for employers hiring residents from specific federal "targeted groups" (like veterans or long-term unemployed individuals). The credit equals 50% of the federal work opportunity tax credit amount, applied to qualified wages paid to Michigan residents certified by the state unemployment agency as part of these groups. It applies to tax years beginning January 1, 2026, and cannot exceed an employer's total tax liability for that year. The bill directly affects Michigan employers (excluding tax-exempt organizations) who hire eligible employees meeting federal and state certification criteria.
HB 5130 exempts the storage, use, or consumption of investment coins and bullion from Michigan's use tax, effective July 7, 1999. It directly affects individuals and businesses buying or selling qualifying precious metals, including collectible coins and bullion (gold, silver, or platinum in bulk form). The bill updates the definition of "bullion" to include gold/silver/platinum leaf, foil, or film with 50%+ metal content (starting January 1, 2026), provided it's used as currency but isn't legal tender. Investment coins are defined as government-issued coins with market value exceeding face value.
HB 5119 allows tax-exempt organizations in Michigan (like nonprofits) to claim a state tax credit equal to 50% of the federal Work Opportunity Tax Credit (WOTC) they earn for hiring employees from specific targeted groups. The credit applies to wages paid to employees certified by Michigan’s unemployment agency as members of these groups, starting in tax years beginning January 1, 2026. Employers must claim this credit on their annual tax returns, and it can only offset state income tax withholding - any excess credit isn’t refunded. The bill directly affects tax-exempt employers hiring eligible employees, aligning Michigan’s credit with federal WOTC rules.
HB 4747 adds a new state income tax deduction for Michigan taxpayers who contribute to 529 education savings plans. It allows residents to subtract their 529 plan contributions from their taxable income when filing Michigan state taxes, directly benefiting families saving for education costs. The bill amends Michigan’s tax code to create this specific deduction, effective immediately after its passage on October 23, 2025. This change provides a direct financial incentive for contributing to qualified education savings accounts.
HB 4432 creates a $2,500 refundable state income tax credit for qualified volunteer emergency medical services (EMS) personnel in Michigan, effective for tax years beginning January 1, 2025. To qualify, volunteers must serve at least 10 hours monthly with a life support agency (like EMS organizations), receive no hourly wage or salary, and only be reimbursed for reasonable expenses or receive customary benefits. The credit requires a signed verification statement from the agency confirming the volunteer’s service hours, compliance with training standards, and non-salary compensation. This directly affects unpaid EMS volunteers who meet these criteria, reducing their state tax liability or providing a refund if the credit exceeds their tax bill.
HB 4431 creates a new $2,500 state income tax credit for qualified volunteer firefighters in Michigan, effective for tax years beginning January 1, 2025. To qualify, individuals must serve at least 10 hours per month as unpaid volunteers (reimbursed only for expenses or standard benefits) with an organized fire department, verified by a written statement from the department head. The credit reduces tax liability, with any excess amount refunded to the taxpayer. This applies specifically to volunteer firefighters meeting the defined criteria, not paid staff or other volunteer roles.
HB 4041 would automatically renew property tax exemptions for eligible homeowners who previously qualified under the poverty exemption program, eliminating the need for them to reapply annually. It directly affects low-income homeowners in Michigan who have already established eligibility for the exemption under current law. The bill amends Michigan law to require automatic continuation of this exemption in specified circumstances, reducing administrative burdens for qualifying residents. This change streamlines the process by removing annual application requirements for those already verified as eligible.
HB 4088 adjusts the property tax credit for Michigan homeowners by raising the taxable value cap for homestead eligibility from $135,000 (through 2021) to $196,500 starting in 2026. It requires annual adjustments to this cap based on the U.S. Consumer Price Index (CPI), rounded to the nearest $100, to maintain its real value over time. The bill directly affects homeowners claiming the property tax credit who own homestead properties with taxable values exceeding the new cap. This change modifies the eligibility threshold under Section 520 of Michigan's Income Tax Act, ensuring the cap keeps pace with inflation.
HB 4185 changes how Michigan's general sales tax revenue is distributed. It directs 15% of the 4% sales tax to cities, villages, and townships through the Glenn Steil Revenue Sharing Act. Sixty percent goes to the state school aid fund (including all 2% tax from aviation fuel sales), while 27.9% of 25% from vehicle/fuel sales funds the transportation system. Additionally, it requires $9-12 million annually from computer software sales to the Michigan health initiative fund.
