SB 1045 clarifies the definition of "owner" for Michigan's homestead property tax credit by explicitly including individuals who place their primary residence into a revocable trust or a qualified personal residence trust. This change ensures that people using these specific types of trusts to hold their homes can still qualify for the tax credit, which is designed to help offset property taxes for homeowners. The bill amends the state's income tax act to update this eligibility rule without altering other parts of the tax code or the credit amount itself.
This bill creates a state income tax credit for individuals who moved to Michigan for a job after earning a degree out of state. To qualify, the taxpayer must have relocated for employment with a Michigan-based employer and provide proof of their degree and job. The credit allows them to deduct 25% of their student loan payments for up to 10 years after graduation, but the total amount cannot exceed 20% of the average yearly tuition at a public Michigan university. If the calculated credit is larger than the taxpayer's actual tax bill, the difference is refunded to them. The measure will only take effect if four other related bills are also passed into law.
This bill creates a tax credit for Michigan residents who earned a degree in the state and subsequently stayed or returned to Michigan for a job. Eligible individuals can claim a credit equal to 50% of their student loan payments for a specific tax year, but the total credit cannot exceed 20% of the average annual tuition at a public Michigan university. To receive the benefit, taxpayers must provide proof of their degree, employment within the state, and student loan payments, and they must apply within 10 years of graduating. If the calculated credit is larger than the taxpayer's total tax liability for that year, the difference will be refunded to them. The legislation will only take effect if four companion bills are also passed into law.
This bill allows Michigan employers to claim a tax credit equal to 50% of student loan payments they make on behalf of employees who graduated from in-state schools and work for the company. The credit is limited to 20% of the average yearly tuition at a public university in the state for each employee per year. To receive the benefit, employers must submit detailed proof of payments and employee information to the state tax department. The bill also requires that any unused portion of the credit be refunded to the employer rather than carried forward. It is part of a package of related bills that must all pass together to take effect.
This bill directs a portion of Michigan's individual income tax revenue to the 21st Century Jobs Trust Fund to support the Michigan Innovation Fund program. It establishes a mandatory deposit of $30 million annually into this fund for the 2026-2027 and 2027-2028 fiscal years, with ongoing contributions of $5 million per year beginning in 2029-2030. The legislation also updates the state's existing tax revenue distribution schedule to include these new allocations alongside contributions to other funds like those for housing, roads, and general operations. Importantly, the bill does not take effect unless a companion bill, SB 1073, is also passed into law.
This bill proposes to increase Michigan's corporate income tax rate from 6.0% to 10.0% starting on October 1, 2026. It also modifies how the tax base is calculated by adding back certain interest and dividend income while removing deductions for oil and gas production expenses. Additionally, the legislation establishes a specific distribution plan for the revenue collected, directing funds to the general fund, housing initiatives, placemaking projects, and a strategic reserve.
HB 6052 amends Michigan's income tax law to allow residents to deduct compensation paid to election inspectors from their taxable income. This change directly affects individuals who serve as poll workers or other election officials and receive payment for their services. By permitting this specific deduction, the bill reduces the amount of income subject to state taxation for those earning wages from election duties. The provision is designed to ensure that compensation for public service in elections does not increase a taxpayer's liability under the state income tax system.
SB 967 amends Michigan's income tax law to establish a new state low-income housing tax credit effective for tax years beginning on or after January 1, 2027. This credit is designed for project owners and equity investors who have been allocated funds to support affordable housing developments, allowing them to reduce their state tax liability by the amount of the credit. The bill includes specific rules for claiming the credit, such as requiring the attachment of an allocation form to tax returns, and mandates that the credit be claimed after other tax credits. Additionally, the legislation requires the state department to recapture a portion of the credit from taxpayers if the related federal tax credit is later disallowed or recaptured. If the credit amount exceeds a taxpayer's tax liability for the year, the unused portion can be carried forward for up to 10 years to offset future taxes.
This bill creates a new state tax credit program designed to encourage private investment in community development projects across Michigan. It allows qualified taxpayers to claim a credit equal to 25% of their eligible investment, increasing to 50% for projects involving historic rehabilitation, rural development, or areas with low-income populations. To receive the credit, applicants must demonstrate local support and prove that the project would not happen without the financial incentive, while the state fund reviews applications based on criteria such as economic soundness and the potential to revitalize blighted or vacant properties. The legislation sets annual spending limits for the program, requires projects to be completed within three years, and mandates that at least 20% of the credits go to rural or small-scale initiatives.
HB 5925 amends Michigan's corporate income tax law to require companies to add back certain expenses related to outsourcing and relocating business operations out of the state. Specifically, the bill mandates that businesses must include specified outsourcing expenses in their taxable income if those costs were incurred to eliminate a trade or business located in Michigan or to relocate a business that was previously in the state to a new location outside of it. The legislation defines these eligible expenses as costs associated with ending or moving a business, such as permit fees, lease brokerage fees, and equipment installation costs. This change directly affects corporations with business activity in Michigan that have undertaken outsourcing or relocation activities, requiring them to pay additional state taxes on these specific expenditures.
