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.
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.
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.
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.
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.
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.
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 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 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.
