Budget & Taxes

in committee · Michigan · House Feb 5, 2025

HB 4055: Individual income tax: credit; child tax credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 275.

HB 4055 creates a new Michigan state tax credit for families with children, effective for tax years beginning January 1, 2025. It allows taxpayers to claim a credit equal to 50% of the federal child tax credit they qualify for on their federal return, applied against their Michigan state income tax. If this credit exceeds the taxpayer's state tax bill, the excess amount is refunded directly to them. The bill directly affects Michigan residents who claim the federal child tax credit and have children, providing a potential cash refund for eligible families.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit reducing state tax burden for families, aligning with tax relief for middle/lower income.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Michigan · House Jan 15, 2025

HB 4008: Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

This bill creates a $2,500 annual tax credit for Michigan volunteer firefighters and emergency medical services (EMS) personnel who meet specific service requirements. To qualify, volunteers must serve at least 120 hours annually (averaging 10+ hours monthly) with an organized fire department or life support agency, receive only expense reimbursements or customary benefits, and provide a signed verification from their agency head. The credit reduces tax owed for eligible volunteers and can be refunded if it exceeds their tax liability. It applies to tax years beginning January 1, 2025, and directly affects unpaid volunteer first responders meeting the defined service criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $2,500 annual tax credit for volunteer firefighters/EMS, reducing tax liability for lower-income public safety workers, aligning with tax relief indicators.95% confidence ✓ HealthcareSupports HealthcareCreates tax credit for EMS personnel, supporting healthcare workforce retention by reducing financial burden on critical frontline providers.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Michigan · House Feb 5, 2025

HB 4056: Individual income tax: other; child care savings program; create. Creates new act. TIE BAR WITH: HB 4057'25

HB 4056 creates Michigan's Child Care Savings Program, allowing residents to open tax-advantaged savings accounts for child care costs. Account holders can deduct contributions from their state income tax and withdraw funds penalty-free to cover eligible child care expenses for children under 14. To claim deductions, account holders must submit receipts for care costs, account statements, and financial institution forms with their tax returns. The program, effective January 2026, requires documentation but does not obligate financial institutions to track account usage or verify eligibility. It directly affects Michigan parents or guardians paying for child care for qualifying children.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax-advantaged child care savings with state income tax deductions, providing relief for families managing childcare costs.95% confidence

Sub-Topics Income Tax

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in committee · Michigan · Senate Aug 12, 2025

SB 494: School aid: local districts; grant program for school districts to maintain smaller classroom sizes; provide for. Amends sec. 11 of 1979 PA 94 (MCL 388.1611).

SB 494 appropriates $17.77 billion for Michigan public schools in fiscal year 2025 and $65 million for fiscal year 2026 from multiple state funds, including the state school aid fund and dedicated education reserves. It specifies how these funds must be allocated across education programs and requires unspent general fund money to transfer to a school aid stabilization fund. The bill does not create new programs but adjusts funding allocations for existing state education budgets. This legislation directly affects all public school districts receiving state education funding under Michigan's school aid system.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $17.77B for public schools in 2025, maintains funding levels, and mandates stabilization transfers - directly supports education budgeting within state fiscal management.95% confidence ✓ EducationSupports EducationAllocates $17.77B for 2025 school funding, maintains class size grants, stabilizes education budgets through dedicated reserves.95% confidence

Sub-Topics State Budget School Funding

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in committee · Michigan · Senate Aug 13, 2025

SB 498: Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & adds secs. 12a & 25a.

SB 498 creates a temporary sales tax holiday for eligible back-to-school items in Michigan, affecting buyers of qualifying clothing and school supplies purchased between August 8-24 annually. It exempts items under $100 (clothing) or $20 (school supplies) from sales tax during this period, allowing buyers to claim refunds via receipts or affidavits within 30 days. Exclusions include clothing accessories, sports gear, protective equipment, and business-use items (except teacher classroom purchases). The holiday applies to all eligible years starting January 1, 2025, through December 31, 2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary tax relief for middle-income families on back-to-school items via sales tax exemptions under $100/$20, aligning with tax relief indicators for lower/middle income.90% confidence

Sub-Topics Sales Tax

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in committee · Michigan · Senate Aug 13, 2025

SB 499: Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 14c.

SB 499 creates a temporary tax holiday for eligible back-to-school items in Michigan. It exempts clothing priced under $100 and school supplies under $20 from use tax when purchased between August 8-24 each year (starting in 2025). To claim the refund, purchasers must submit receipts showing the item details, price, and tax paid within 30 days of purchase. This policy directly affects Michigan residents buying qualifying school items during the designated period, excluding accessories, sports equipment, and business-use items.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary tax exemption for school items, reducing tax burden on lower-income families during back-to-school season, aligning with tax relief indicators.95% confidence

Sub-Topics Sales Tax

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failed · Michigan · House Aug 21, 2025

HJR M: Legislature: other; enactment of appropriation bills by a certain date; require. Amends sec. 31 of art. IV, sec. 18 of art. V & sec. 17 of art. IX of the state constitution.

This constitutional amendment (HJR M) would require Michigan's general budget bills to be enacted by a specific date each year (currently set as August 1st under existing law). If not enacted by that date, it would suspend the pay of all state legislators and the governor until the budget is passed. The bill amends Articles IV, V, and IX of the Michigan Constitution to establish this deadline and consequence. It is not yet law, as it failed to pass during its August 21, 2025, vote (70 yeas, 30 nays).

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires annual budget enactment by August 1st with pay suspension for delays, promoting fiscal responsibility and timely budget management per constitutional amendments.95% confidence

Sub-Topics Appropriations State Budget

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passed · Michigan · Senate Jun 10, 2025

SB 229: Sales tax: other; deduction or exclusion and audit of qualified delivery network sales; provide for. Amends sec. 2d of 1933 PA 167 (MCL 205.52d).

This bill requires online marketplaces (like Amazon or Etsy) to collect and pay Michigan's sales tax on all sales they facilitate, regardless of whether the individual seller has a physical presence in the state. It shifts tax audit responsibility from sellers to the marketplace platform, and prohibits class-action lawsuits against platforms over tax overpayments. The bill also creates a new rule allowing delivery services (e.g., food or package delivery apps) to deduct tax they paid to sellers from their own tax bill under specific conditions. These changes apply to all marketplace transactions, including those involving delivery networks.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires online marketplaces to collect sales tax, shifting audit responsibility to platforms and closing tax collection loopholes, increasing state revenue.95% confidence

Sub-Topics Audits & Accountability Sales Tax

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signed · Michigan · House Dec 31, 2025

HB 4543: Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).

HB 4543 changes how Michigan's home heating credit is adjusted annually. It replaces the use of the national U.S. Consumer Price Index (CPI) with the Detroit Consumer Price Index to calculate annual credit adjustments. This means the credit amount for eligible households will now reflect local cost-of-living changes in Detroit instead of national averages. The bill directly affects low-to-moderate income Michigan residents who claim the home heating credit on their state tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesChanges credit adjustment to Detroit CPI (typically higher than national), increasing tax relief for low-to-moderate income Detroit residents.95% confidence ✓ HousingSupports HousingAdjusts home heating credit to Detroit CPI, better reflecting local costs for low-income households, supporting housing affordability through targeted tax relief.85% confidence

Sub-Topics Property Taxes

passed · Michigan · Senate May 14, 2025

SB 172: Appropriations: department of natural resources; appropriations for fiscal year 2025-2026; provide for. Creates appropriation act.

SB 172 is a funding bill that allocates over $636 million to Michigan's Department of Natural Resources (DNR) for the 2025-2026 fiscal year. It provides budget authority for DNR operations, including state parks, wildlife programs, and Great Lakes restoration, funded through state general funds, federal grants, and special revenue accounts like park fees and hunting licenses. The bill specifies exact funding amounts for key areas such as department administration, invasive species control, and public outreach programs. This is a routine budget appropriation, not a policy change, directly affecting DNR's ability to manage natural resources and public facilities.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $636M for DNR operations including state parks, wildlife, and Great Lakes programs via state general funds and user fees, directly advancing public service funding under budget allocation.95% confidence ✓ EnvironmentSupports EnvironmentAllocates $636M to DNR for state parks, wildlife programs, and Great Lakes restoration - direct funding for environmental protection and conservation initiatives.95% confidence

Sub-Topics Appropriations State Budget Parks & Recreation Wildlife

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