Budget & Taxes (Income Tax)

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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passed both · Michigan · House May 20, 2025

HB 4201: Individual income tax: retirement or pension benefits; department of corrections retirement and pension benefits; exempt from income taxes. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 4201 amends Michigan's income tax law to exempt certain retirement benefits from state taxation. It specifically adds a deduction for retirement or pension benefits received from Michigan's public retirement systems (like state employee pensions) or federal public retirement systems. This directly affects Michigan residents who receive these types of public-sector retirement benefits by reducing their taxable income. The change modifies Section 30 of Michigan's Income Tax Act (MCL 206.30) to exclude these benefits from taxable income calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts public retirement benefits from state income tax, providing tax relief for recipients. Directly modifies tax law to reduce taxable income per bill summary.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts public retirement benefits from state tax, increasing take-home pay for state workers and retirees, directly enhancing compensation and financial security for public-sector employees.95% confidence

Sub-Topics Income Tax Pensions Public Employees Retirement Benefits

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in committee · Michigan · Senate Dec 17, 2025

SB 472: Individual income tax: revenue distributions; earmark of withholding tax capture revenues into the more jobs for Michigan fund; provide for. Amends secs. 51f & 711 of 1967 PA 281 (MCL 206.51f & 206.711).

SB 472 redirects specific income tax revenues toward job creation programs. It requires that portions of withholding tax collected from businesses with "certified new jobs" (new positions) or "protected jobs" (existing positions) be deposited into two dedicated funds: the "Good Jobs for Michigan Fund" and the "More Jobs for Michigan Fund." Businesses participating in Michigan's strategic job programs must now separately report the tax amounts tied to these certified jobs on their annual tax filings. This affects employers with agreements under Michigan's job creation initiatives, ensuring targeted tax revenue flows directly to support workforce development.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects income tax revenues to dedicated job creation funds (More Jobs for Michigan Fund), explicitly funding economic development programs through tax allocation.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRedirects income tax revenues to job creation funds (Good Jobs/More Jobs for Michigan), directly advancing employment initiatives through dedicated funding.92% confidence

Sub-Topics Income Tax Revenue Workforce Development

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in committee · Michigan · Senate Jun 17, 2025

SB 426: Individual income tax: other; employment withholdings redirected from the state to certain community colleges for the new jobs training program; clarify application to professional employer organizations. Amends secs. 703, 705 & 711 of 1967 PA 281 (MCL 206.703 et seq.). TIE BAR WITH: SB 425'25

SB 426 redirects a portion of employer income tax withholdings - currently sent to the state treasury - to fund job training programs at specific community colleges. It amends Michigan's tax code to require that withholdings from employee paychecks be redirected to community colleges for workforce development, rather than accumulating in state general funds. The bill also clarifies how these withholdings apply to professional employer organizations (PEOs) that handle payroll for other businesses. This policy change directly affects employers using PEOs and community colleges administering the new job training initiative.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects existing employer tax withholdings from state treasury to fund community college job training programs, allocating tax revenue toward workforce development.95% confidence ✓ EducationSupports EducationRedirects employer tax withholdings to community colleges for job training programs, providing direct funding for higher education workforce development.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRedirects employer tax withholdings to fund community college job training programs, advancing workforce development under Labor & Employment.90% confidence

Sub-Topics Income Tax Workforce Development

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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 · Senate Sep 18, 2025

SB 556: Individual income tax: other; MiAble fund; create. Amends 2015 PA 160 (MCL 206.981 - 206.997) by adding sec. 3a. TIE BAR WITH: SB 555'25

SB 556 creates the MiABLE fund in the Michigan state treasury to support the Michigan ABLE savings program for people with disabilities. The fund receives money from income tax receipts (under MCL 206.51) and other sources, with all balances rolling over annually instead of returning to the general fund. It specifically covers program administration costs and reimburses fees charged to participants for account maintenance and asset-based fees. This bill directly affects the Michigan ABLE program’s financial operations and its participants, who use the savings accounts without losing eligibility for benefits. The fund’s structure ensures dedicated, ongoing resources for the program’s management.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates MiABLE fund using income tax receipts to cover program administration costs, directing tax revenue to support disability savings program, aligning with fiscal management of dedicated funds.90% confidence ✓ HealthcareSupports HealthcareCreates MiABLE fund to support ABLE program for people with disabilities, ensuring financial management without loss of healthcare benefits like Medicaid.90% confidence

Sub-Topics Income Tax State Budget

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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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