Individual income tax: exemptions; exemption for post-graduation scholarship grants; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 5775 amends Michigan's individual income tax law to create a new tax exemption for post-graduation scholarship grants. This change directly affects individuals who receive these specific scholarship awards, allowing them to exclude that income from their state taxable income. The bill modifies Section 30 of the Income Tax Act by adding a new provision that treats post-graduation scholarship grants similarly to other educational benefits currently exempt from taxation. By removing these grants from taxable income, the legislation reduces the amount of state tax residents must pay on this specific source of funding.