Budget & Taxes (Tax Credits)

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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passed · Michigan · Senate Aug 13, 2025

SB 435: 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).

SB 435 adjusts Michigan's home heating credit for individual income tax by changing the inflation index used to calculate the credit amount. Instead of using the standard U.S. Consumer Price Index (CPI), the bill requires the Detroit Consumer Price Index (CPI) to determine annual credit adjustments. This change directly affects Michigan residents who claim the home heating credit, particularly those in Detroit or areas with cost-of-living patterns reflected in the Detroit CPI. The policy modifies how the credit amount is updated each year to better align with local heating cost trends, rather than national averages.

Topics ✓ Budget & TaxesSupports Budget & TaxesChanges inflation index for home heating credit to Detroit CPI, likely increasing tax relief for lower-income residents in higher-cost Detroit area.85% confidence

Sub-Topics Tax Credits

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in committee · Michigan · House May 13, 2025

HB 4387: Individual income tax: credit; credit for qualified expenditures attributable to supplies, repairs, and restoration after a declared state of emergency. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 282.

HB 4387 creates a temporary 2025 income tax credit for Michigan residents affected by a severe winter storm and ice storm declared a state of emergency by Governor Whitmer on March 31, 2025. It allows eligible taxpayers to claim a credit of up to $5,000 for qualified expenses directly related to repairing or restoring homes, property, or businesses damaged by the emergency - such as purchasing generators, chainsaws, or building materials. To qualify, taxpayers must reside in the declared emergency area, provide proof of expenses (including federal ID and property address), and confirm expenses weren’t reimbursed. The credit applies only to the 2025 tax year and cannot exceed the taxpayer’s total tax liability for that year.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary tax credit for disaster recovery expenses, providing tax relief to affected residents and promoting fiscal relief during emergency repairs.95% confidence

Sub-Topics Procurement Tax Credits

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in committee · Michigan · Senate May 21, 2025

SB 321: Individual income tax: credit; credit for contributions to scholarship-granting organizations and deduction of funds distributed to student opportunity scholarship accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds secs. 279 & 679. TIE BAR WITH: SB 320'25

Senate Bill 321 proposes changes to Michigan's Income Tax Act for individuals. The bill aims to create an income tax credit for contributions made to scholarship-granting organizations. It also seeks to establish a tax deduction for funds distributed to student opportunity scholarship accounts. These provisions are intended to incentivize financial support for educational scholarships. However, the specific details regarding the eligibility, amounts, and operational mechanisms of these new credits and deductions are not present in the provided truncated bill text.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit/deduction for scholarship contributions, providing tax relief to incentivize educational support under tax policy.95% confidence ✓ EducationSupports EducationCreates tax credit/deduction for scholarship contributions, incentivizing private funding for educational access per bill summary and subjects.92% confidence

Sub-Topics Income Tax Tax Credits School Choice Student Financial Aid

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in committee · Michigan · House Oct 23, 2025

HB 4825: Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: HB 4823'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate tax credit reducing business tax liability, providing tax relief per tax credit provisions in bill's subject and summary.95% confidence ✓ EnvironmentSupports EnvironmentTax credit incentivizes returnable beverage containers, reducing single-use plastic waste and promoting resource conservation, aligning with environmental protection goals.90% confidence

Sub-Topics Business Taxes Tax Credits Recycling

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in committee · Michigan · House Oct 28, 2025

HB 5118: Individual income tax: credit; work opportunity tax credit for qualified employees; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: HB 5119'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for employers hiring targeted groups (veterans, long-term unemployed), reducing tax liability and incentivizing employment. Aligns with tax relief and economic support policies.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employers hiring from targeted worker groups (veterans, long-term unemployed), directly promoting employment opportunities and labor market inclusion.95% confidence ✓ VeteransSupports VeteransVeterans explicitly listed as a targeted group for tax credit, incentivizing employer hiring to support veteran employment and workforce integration.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Professional Licensing Unemployment Veteran Employment

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in committee · Michigan · House Oct 28, 2025

HB 5119: Individual income tax: withholding requirements; work opportunity withholdings tax credit for certain tax exempt organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 714. TIE BAR WITH: HB 5118'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for nonprofits hiring targeted groups, reducing state tax revenue but incentivizing employment through tax relief, aligning with supportive fiscal policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit to incentivize hiring from targeted groups, directly advancing employment incentives per bill's 'Labor: employment incentives' subject.95% confidence

Sub-Topics Income Tax Tax Credits Unemployment

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in committee · Michigan · House Oct 28, 2025

HB 4432: Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 282.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for EMS volunteers, providing direct tax relief for public service workers.90% confidence ✓ HealthcareSupports HealthcareProvides $2,500 tax credit to volunteer EMS personnel, strengthening emergency medical services workforce stability and access to critical healthcare response.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Michigan · House Oct 28, 2025

HB 4431: Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $2,500 tax credit for volunteer firefighters, reducing tax liability and providing direct relief to public service workers, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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