Budget & Taxes (Income Tax)

in committee · Michigan · Senate Mar 13, 2025

SB 151: Individual income tax: rate; rollback of rate to 3.9%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

SB 151 reduces Michigan's individual income tax rate from 4.25% to 3.9%, effective January 1, 2025. This change applies to all individual taxpayers filing Michigan income tax returns under the current tax code. The bill amends Section 51 of the 1967 Income Tax Act to establish this new rate for tax years beginning on or after January 1, 2025. It does not alter other provisions of the tax code, such as school aid fund deposits or agricultural preservation fund allocations.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces individual income tax rate from 4.25% to 3.9%, providing tax relief to all taxpayers per bill's explicit language.95% confidence

Sub-Topics Income Tax

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passed both · Michigan · House Mar 20, 2025

HB 4170: Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

HB 4170 permanently sets Michigan's individual income tax rate at 4.05% for all taxpayers, replacing a temporary 4.25% rate scheduled to take effect in 2024. It creates a mechanism where the rate could decrease further if state revenue growth exceeds inflation, requiring annual revenue reviews. The bill directly affects all Michigan residents who pay individual income tax. The change takes effect immediately for tax years beginning January 1, 2025, with the 4.05% rate now permanent unless triggered by the revenue growth condition.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently lowers individual income tax rate from 4.25% to 4.05%, providing tax relief and creating mechanism for potential further reductions if revenue growth exceeds inflation.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

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in committee · Michigan · Senate Apr 16, 2025

SB 209: Individual income tax: deductions; certain broadband expansion grants; deduct from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).

Senate Bill 209 proposes to amend Michigan's Income Tax Act of 1967. This bill would allow individuals to deduct certain broadband expansion grants from their taxable income. By doing so, it would reduce the amount of income subject to state tax for those who receive these grants. The changes would impact sections 30, 623, and 815 of the existing act, which define taxable income and related provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows tax deduction for broadband grants, reducing taxable income - providing direct tax relief to recipients.95% confidence ✓ TechnologySupports TechnologyBill allows tax deductions for broadband expansion grants, directly incentivizing internet access expansion per its summary and subjects.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Broadband Access Telecommunications

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in committee · Michigan · House Aug 25, 2026

HB 4202: Individual income tax: exemptions; additional exemption for fetus; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 4202 amends Michigan's income tax code to update deductions for retirement benefits and education-related payments. It specifically adjusts the maximum deductible amount for retirement/pension benefits (currently $42,240 for singles/$84,480 for couples) to automatically increase annually based on the Consumer Price Index, and clarifies rules for deducting payments made to Michigan's education trust for tuition. The bill affects Michigan taxpayers who claim these deductions, particularly retirees and those using education trust programs. It does not create a new "fetus exemption" (a misstatement in the bill title), but refines existing tax code provisions for retirement income and education savings. The bill is currently in committee after its March 2025 introduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax code to increase retirement benefit deductions via CPI adjustment, providing tax relief for taxpayers and promoting fiscal responsibility through automatic inflation adjustment.85% confidence ✓ EducationSupports EducationClarifies tax deductions for education trust tuition payments, reducing costs for families and improving access to education through tax relief.75% confidence

Sub-Topics Income Tax Pensions

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in committee · Michigan · Senate May 15, 2025

SB 308: Individual income tax: credit; working parent tax credit and advanced monthly payments of that credit; create and provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 272b.

Senate Bill 308 creates a new refundable "working parent tax credit" for eligible taxpayers in Michigan, effective for tax years beginning January 1, 2025. This credit provides $5,500 per qualified dependent aged four or younger, for taxpayers with a household income not exceeding 150% of the state median income. The bill also establishes a program for the Department to issue monthly advance payments of this credit to qualified taxpayers. However, taxpayers enrolled in an Rx Kids program are not eligible for this credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit ($5,500 per dependent) for lower/middle-income working parents, directly providing tax relief and increasing disposable income for eligible households.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $5,500 per qualifying dependent via refundable tax credit, directly supporting working parents' financial stability and workforce participation.95% confidence

Sub-Topics Income Tax Tax Credits

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passed both · Michigan · House May 29, 2025

HB 4287: Individual income tax: deductions; certain broadband expansion grants; deduct from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).

HB 4287 modifies Michigan's individual income tax code to adjust deductions for retirement and pension benefits. It increases the maximum deductible amount for retirement income to $42,240 for single filers and $84,480 for joint filers, with annual adjustments based on the Consumer Price Index. This change directly affects Michigan taxpayers who receive retirement or pension benefits, allowing them to reduce their taxable income by a larger portion of those benefits while maintaining specific eligibility rules. The bill does not alter other tax provisions or include broadband-related funding as referenced in its title.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases retirement income deductions, providing tax relief to retirees by lowering taxable income and expanding eligibility.95% confidence

Sub-Topics Income Tax Pensions

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in committee · Michigan · House Jun 11, 2025

HB 4592: Individual income tax: deductions; deduction for all compensation earned by a taxpayer 17 years of age or younger; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 4592 would create a new tax deduction for Michigan taxpayers aged 17 or younger, allowing them to subtract their earned income (such as wages from a part-time job) from their taxable income. This directly affects minor workers in Michigan who earn income through employment. The bill amends Michigan's tax code to add this deduction under existing provisions for other types of income, reducing the amount of income subject to state income tax. The change would lower tax bills for qualifying young workers but does not alter other tax rules or create new government programs. (Note: This bill is currently in committee and has not been enacted.)

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for minor workers, reducing taxable income and lowering tax burden for lower-income earners per tax relief indicator.95% confidence

Sub-Topics Income Tax

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in committee · Michigan · House Aug 12, 2025

HB 4754: Individual income tax: credit; credit for cash and food donations to certain nonprofit organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 260 & 679.

HB 4754 creates a tax credit for Michigan taxpayers who donate cash or food to qualifying nonprofits, such as homeless shelters, food banks, or kitchens that primarily serve people with household incomes below 140% of the federal poverty level. Taxpayers can claim a credit equal to the value of their donations, capped at $150 for individuals or $300 for joint filers, or 10% of tax liability (up to $7,500) for estates/trusts. To claim the credit, donors must receive written proof from the nonprofit confirming its eligibility, including compliance with anti-discrimination laws and IRS tax-deductibility rules. The credit applies to tax years beginning January 1, 2026, and excess credits are refundable.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for donations to nonprofits serving low-income populations, reducing taxpayer liability. Directly provides tax relief through individual income tax credits.95% confidence ✓ HousingSupports HousingBill creates tax credit for donations to homeless shelters and food programs serving low-income households, directly addressing homelessness and affordable housing support through nonprofit funding.85% confidence

Sub-Topics Income Tax Tax Credits Homelessness

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in committee · Michigan · House Feb 4, 2025

HB 4051: Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 4051 amends Michigan's individual income tax law to increase the deduction limit for retirement and pension benefits. It establishes a $42,240 annual deduction for single filers and $84,480 for joint filers on retirement income (previously higher limits existed but were not explicitly capped), with these amounts automatically adjusted each year based on the Consumer Price Index. The bill directly affects Michigan taxpayers receiving retirement benefits by allowing them to deduct a larger portion of that income from their taxable income. This change modifies existing tax code provisions to provide a clearer, inflation-adjusted deduction threshold for retirement income.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deductions for retirement income, providing relief to taxpayers by lowering taxable income for retirees, aligning with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Income Tax Pensions

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in committee · Michigan · Senate Jun 26, 2025

SB 459: Individual income tax: credit; credit for certain user fees incurred to operate a vehicle on a public service facility; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

SB 459 creates a tax credit for Michigan residents who pay user fees to operate vehicles on public service facilities (like toll roads or bridges) when those facilities are the only transportation option to or from specific townships. It applies to taxpayers living in or working in townships with populations of 10,000-15,000 located in counties with over 1.5 million people, starting tax years beginning January 1, 2026. The credit covers all qualifying user fees paid during the tax year, with refunds issued if the credit exceeds the taxpayer’s total tax liability. This bill directly affects residents and workers in defined high-population-county townships who rely on these public service facilities for commuting.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing liability for residents paying unavoidable tolls/fees, aligning with tax relief for middle-income taxpayers as per topic indicators.90% confidence

Sub-Topics Income Tax

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