Budget & Taxes (Income Tax)

in committee · Michigan · Senate Jan 8, 2025

SB 12: Individual income tax: deductions; definition of dependent; include fetus. Amends sec. 8 of 1967 PA 281 (MCL 206.8).

SB 12 amends Michigan's Individual Income Tax Act (MCL 206.8) to add a fetus as a qualifying dependent for state tax deductions, effective for tax years beginning January 1, 2025. It defines a "dependent" to include a fetus that has completed at least 12 weeks of gestation, is under physician care since that point, and is observed by a physician through the end of the tax year. This change directly affects Michigan taxpayers who claim dependents on their state income tax returns, allowing deductions for qualifying fetuses meeting the specified medical criteria. The bill does not alter federal tax law but modifies state-level dependent definitions and deductions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax deductions for dependents, providing potential relief to taxpayers claiming fetal dependents under new definition.85% confidence

Sub-Topics Income Tax

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in committee · Michigan · Senate Feb 19, 2025

SB 91: Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

This bill (SB 91) amends Michigan's income tax code to exclude certain gratuities received by tipped employees from taxable income. It directly affects Michigan workers in service industries (like restaurants) who earn tips, allowing them to deduct specific tip income from their taxable earnings. The key provision modifies Section 30 of the Income Tax Act to add this exclusion, reducing the taxable income for eligible tipped workers. This change aligns Michigan's tax treatment with federal guidelines for tip income deductions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes tips from taxable income for tipped workers, reducing their tax burden. Direct tax relief for lower-income service industry employees.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes tips from taxable income for tipped workers, reducing tax burden and increasing take-home pay - directly supports workers' financial well-being in labor context.92% confidence

Sub-Topics Income Tax Labor Standards Minimum Wage

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in committee · Michigan · Senate Mar 5, 2025

SB 117: Individual income tax: rate; repeal of the personal income tax; provide for. Amends title & sec. 601 of 1967 PA 281 (MCL 206.601) & repeals pt. 1, pt. 3 & pt. 4 of 1967 PA 281 (MCL 206.1 - 206.532, 206.701 - 206.725 & 206.801 - 206.847).

SB 117 repeals specific sections of Michigan's corporate income tax provisions (MCL 206.1-206.532, 206.701-206.725, and 206.801-206.847) that governed corporate tax rates and reporting. The bill directly affects corporations previously subject to these repealed tax rules by eliminating those requirements. Key mechanism: it removes the referenced corporate tax sections from Michigan's tax code without replacing them. This is a procedural repeal of existing corporate tax provisions, not a new tax or personal income tax change. The bill is in early committee review (introduced March 5, 2025).

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals corporate tax provisions (MCL 206.1-206.532, etc.), eliminating tax collection from corporations and reducing state revenue. Directly weakens tax system.85% confidence

Sub-Topics Business Taxes Income Tax

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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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