All Roll Calls
Yes: 219 • No: 25
MichiganHB 49612025-2026 Regular SessionHouseWALLET
Individual income tax: income; treatment of certain provisions under the internal revenue code and revenue distributions; modify. Amends secs. 12, 30, 36, 607, 695 & 805 of 1967 PA 281 (MCL 206.12 et seq.) & repeals sec. 51d of 1967 PA 281 (MCL 206.51d). TIE BAR WITH: HB 4183'25, HB 4951'25, HB 4968'25Last Action: assigned PA 24'25 with immediate effect
Sponsored By: Ann Bollin (Republican)
Signed by Governor
Individual income tax: incomeIndividual income tax: deductionsIndividual income tax: flow-through entitiesIndividual income tax: administrationCorporate income tax: business incomeCorporate income tax: flow-through entitiesCorporate income tax: administrationIndividual income tax: retirement or pension benefitsCorporate income tax: revenue distributionIndividual income tax: revenue distributions
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 6 benefits, 0 costs, 4 mixed.
Broader deductions for wrongful imprisonment compensation
You can deduct compensation under Michigan's Wrongful Imprisonment Compensation Act to the extent included in adjusted gross income. The law removes the restriction to tax years beginning after December 31, 2018.
Disabled veterans get loan discharge deductions
Beginning with tax years starting January 1, 2025, qualifying disabled veterans can deduct student-loan discharge income included in adjusted gross income. The Education Department must discharge the loan through its total and permanent disability program and report it on Form 1099-C. Veterans must have a VA finding of permanent, total service-related disability with benefits at the 100% rate, or individual unemployability.
More Guard pensions qualify for deductions
You can deduct retirement or pension benefits for Michigan National Guard service to the extent included in adjusted gross income. Benefits no longer need to have begun on or after January 1, 2012.
Workers get tips and overtime deductions
For tax years beginning in 2026, 2027, or 2028, Michigan allows deductions for qualified tips and overtime pay. Each deduction is limited to the amount allowed on your federal return for the same year. Nonresidents can deduct only qualifying pay for work performed in Michigan.
Michigan directs tax money toward roads
The revenue schedule sends up to $1.2 billion first to the General Fund, then up to $50 million to housing annually. In fiscal years 2022–23 and 2023–24, the next deposits are up to $50 million for revitalization and $500 million for strategic outreach and attraction. In 2024–25, the next deposits are up to $50 million for revitalization and $250 million for the Healthy Michigan Fund. After the initial General Fund and housing deposits, road-fund limits rise: $688 million in 2025–26, $776 million in 2026–27, $864 million in 2027–28, $952 million in 2028–29, and $1.04 billion annually beginning in 2029–30. Deposits depend on available revenue, follow the stated order, and leave the remaining money for the General Fund.
Retirees face deduction and exemption tradeoffs
For tax years beginning in 2026 through 2028, eligible retirees can claim an age-based deduction of $20,000 single or $40,000 jointly. Those claiming it cannot also claim the personal exemption. This restriction does not bar the separate retirement deduction described in subsection (1)(f)(iii).
Broader tax exemption after a stillbirth
You can claim an additional Michigan personal exemption for a tax year when you have a state certificate of stillbirth. The certificate must come from the Michigan Department of Health and Human Services. The law removes the restriction to tax years beginning on or after January 1, 2019.
Estates and trusts use separate deductions
Michigan resident estates and trusts exclude specified federal transition rules for tax years beginning after December 31, 2021. These are Public Law 119-21, section 70302 rules, including research-expense transitions related to section 174A. For years beginning after December 31, 2024, they disregard federal sections 168(n) and 174A. They use sections 163(j), 168(k), 174, and 179 as of December 31, 2024. The State Treasurer must make needed adjustments to related code references.
Filers can choose federal code versions
The law sets January 1, 2025, as the federal tax code reference date in these provisions. Taxpayers can instead elect the federal code in effect for their tax year. The version used can change how federal rules enter the Michigan tax calculation.
Business owners use separate Michigan deductions
For tax years beginning after December 31, 2021, Michigan excludes federal transition rules under Public Law 119-21, section 70302. For years beginning after December 31, 2024, both covered income calculations exclude federal sections 168(n) and 174A. The adjusted-gross-income calculation uses December 31, 2024, rules for sections 163(j), 168(k), 174, and 179. The covered federal-taxable-income calculation instead excludes section 168(k), while freezing sections 163(j), 174, and 179 at that date. These rules affect business interest, depreciation, research costs, and expensing; the State Treasurer must adjust related code references.
Sponsors & Cosponsors
Sponsor
Ann Bollin
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 10/3/2025
Senate amendment(s) concurred in
Yes: 102 • No: 7 • Other: 1
Senate vote • 10/3/2025
PASSED; GIVEN IMMEDIATE EFFECT
Yes: 22 • No: 14 • Other: 1
House vote • 9/25/2025
passed; given immediate effect
Yes: 95 • No: 4 • Other: 11
Actions Timeline
assigned PA 24'25 with immediate effect
10/8/2025Housefiled with Secretary of State 10/07/2025 01:34 PM
10/8/2025Houseapproved by the Governor 10/07/2025 12:18 PM
10/8/2025Housepresented to the Governor 10/06/2025 03:06 PM
10/7/2025Housebill ordered enrolled
10/3/2025Housefull title agreed to
10/3/2025HouseSenate amendment(s) concurred in Roll Call #248 Yeas 102 Nays 7 Excused 0 Not Voting 1
10/3/2025Houserule suspended
10/3/2025Houselaid over one day under the rules
10/3/2025Housereturned from Senate with amendment(s) with immediate effect and full title
10/3/2025HouseRETURNED TO HOUSE
10/3/2025SenateINSERTED FULL TITLE
10/3/2025SenatePASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 262 YEAS 22 NAYS 14 EXCUSED 1 NOT VOTING 0
10/3/2025SenateAMENDMENT(S) DEFEATED
10/3/2025SenatePLACED ON IMMEDIATE PASSAGE
10/3/2025SenateRULES SUSPENDED
10/3/2025SenatePLACED ON ORDER OF THIRD READING WITH AMENDMENT(S)
10/2/2025SenateAMENDMENT(S) CONCURRED IN
10/2/2025SenateREPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH AMENDMENT(S)
10/2/2025SenateREFERRED TO COMMITTEE OF THE WHOLE
9/29/2025SenateRULES SUSPENDED
9/29/2025SenatePASSED BY HOUSE WITH IMMEDIATE EFFECT
9/29/2025Housetransmitted
9/25/2025Housetitle amended
9/25/2025Housepassed; given immediate effect Roll Call #233 Yeas 95 Nays 4 Excused 0 Not Voting 11
9/25/2025House
Bill Text
Public Act
10/7/2025
As Passed by the House
10/3/2025
As Passed by the Senate
10/3/2025
House Concurred
10/3/2025
Introduced
9/16/2025
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