HB 4747 Michigan House · 2025-2026 Regular Session

Individual income tax: deductions; deduction for contributions made to any 529 education savings plan; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 4747 adds a new state income tax deduction for Michigan taxpayers who contribute to 529 education savings plans. It allows residents to subtract their 529 plan contributions from their taxable income when filing Michigan state taxes, directly benefiting families saving for education costs. The bill amends Michigan’s tax code to create this specific deduction, effective immediately after its passage on October 23, 2025. This change provides a direct financial incentive for contributing to qualified education savings accounts.

Bill status passed both 4 of 5 stages cleared

Introduction

Jul 2025

Committee Review

Oct 2025

House Passage

Oct 2025

Senate Passage

Oct 2025

Governor

Introduced Jul 29, 2025 Last action Oct 23, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute (H-1) → As Passed by the House · 8 edits · Oct 21, 2025

MODERATE

This bill significantly expands the Michigan income tax code by adding numerous new deductions and adjustments for taxpayers, including provisions for education savings accounts, ABLE accounts, first-time home buyer savings, and specific benefits for disabled veterans, Holocaust victims, and tribal members. It also introduces new rules for calculating adjusted gross income regarding oil and gas production and updates the treatment of retirement benefits based on birth year. These changes aim to provide greater tax relief and align state tax law with recent federal developments and emerging financial programs.

Scope change

The bill expands the scope of the income tax act to include new categories of income adjustments and deductions that were not previously available, affecting a wide range of taxpayers including seniors, veterans, tribal members, and those utilizing specific savings programs.

ELIGIBILITY

Added new deductions for contributions to and withdrawals from education savings accounts and ABLE savings accounts, effective in 2026.

Added deductions for first-time home buyer savings account contributions and qualified withdrawals.

Added specific deductions for disabled veterans receiving student loan discharge due to disability and Holocaust victims receiving asset recovery settlements.

Added new deductions for resident tribal members regarding nonbusiness income and for public safety employees regarding retirement benefits.

Updated the calculation of adjusted gross income to exclude certain oil and gas production deductions and apply specific 2024 federal tax rules.

Revised the rules for deducting retirement and pension benefits, creating new tiers based on birth year and adding an election for public safety employees.

REQUIREMENT

Added new definitions for terms such as 'Holocaust victim', 'Recovered asset', and 'Resident tribal member' to clarify eligibility for new deductions.

TIMELINE

Established specific effective dates for various new deductions, with many provisions becoming available starting in 2026 or later.

Floor votes · House Oct 21, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Oct 23, 2025

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Oct 23, 2025

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Oct 21, 2025

Introduced

title amended

lower

Oct 21, 2025

Lower · Passed

passed; given immediate effect Roll Call #255 Yeas 72 Nays 32 Excused 0 Not Voting 6

lower

Oct 21, 2025

Lower · Passed

substitute (H-1) adopted

lower

Sep 16, 2025

Committee

referred to second reading

lower

Sep 16, 2025

Lower · Passed

reported with recommendation without amendment

lower

Jul 29, 2025

Committee

referred to Committee on Finance

lower

Jul 29, 2025

Introduced

introduced by Representative Rep. Mark Tisdel

lower

1 primary · 0 co-sponsors