Budget & Taxes

passed both · Michigan · House Oct 23, 2025

HB 4376: Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51).

HB 4376 modifies Michigan's sales tax rules for trade-in values on vehicle purchases. It increases the annual adjustment for the maximum deductible trade-in value from $500 to $1,000, starting January 1, 2020. This change allows car buyers trading in vehicles to reduce the taxable sales price by more when purchasing new or used cars from dealers. The provision applies only when the trade-in value is separately stated on the sales invoice.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases sales tax exemption for vehicle trade-ins, reducing taxable amount and providing consumer tax relief under Budget & Taxes framework.95% confidence

Sub-Topics Procurement Sales Tax

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in committee · Michigan · House Oct 23, 2025

HB 4825: Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: HB 4823'25

HB 4825 would create a tax credit for businesses that sell beverages in returnable containers (like soda cans or bottles), allowing them to deduct $0.005 per container sold from their Michigan corporate income tax starting in 2026. The credit amount would automatically increase each year based on inflation (using the U.S. Consumer Price Index) beginning in 2027. To claim the credit, businesses must attach a specific report (required under existing law) with their annual tax return. This policy directly affects beverage distributors who manage deposit systems for returnable containers, reducing their tax liability or generating refunds if the credit exceeds their tax bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate tax credit reducing business tax liability, providing tax relief per tax credit provisions in bill's subject and summary.95% confidence ✓ EnvironmentSupports EnvironmentTax credit incentivizes returnable beverage containers, reducing single-use plastic waste and promoting resource conservation, aligning with environmental protection goals.90% confidence

Sub-Topics Business Taxes Tax Credits Recycling

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in committee · Michigan · House Oct 28, 2025

HB 5131: Individual income tax: deductions; capital gains from sale or exchange of investment coins and bullion; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30). TIE BAR WITH: HB 5129'25, HB 5130'25

House Bill 5131 proposes an amendment to the state's individual income tax act. It aims to create a new deduction for taxpayers. This deduction would allow individuals to subtract capital gains derived from the sale or exchange of investment coins and bullion when calculating their state taxable income. This change would reduce the amount of income subject to state tax for those who realize such gains.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax deduction for capital gains on investment coins/bullion, primarily benefiting wealthy investors by reducing state tax revenue without public funding or fiscal responsibility indicators.85% confidence

Sub-Topics Income Tax

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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 5130: Use tax: exemptions; exemptions for the sale of investment coins and bullion; modify. Amends sec. 4u of 1937 PA 94 (MCL 205.94u). TIE BAR WITH: HB 5131'25, HB 5129'25

HB 5130 exempts the storage, use, or consumption of investment coins and bullion from Michigan's use tax, effective July 7, 1999. It directly affects individuals and businesses buying or selling qualifying precious metals, including collectible coins and bullion (gold, silver, or platinum in bulk form). The bill updates the definition of "bullion" to include gold/silver/platinum leaf, foil, or film with 50%+ metal content (starting January 1, 2026), provided it's used as currency but isn't legal tender. Investment coins are defined as government-issued coins with market value exceeding face value.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts investment coins/bullion from use tax, providing tax relief for individuals/businesses dealing in precious metals.95% confidence

Sub-Topics Sales Tax

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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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passed both · Michigan · House Oct 23, 2025

HB 4747: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdds tax deduction for 529 contributions, reducing taxable income for education savings. Provides direct tax relief to families, aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationAdds tax deduction for 529 contributions, incentivizing education savings and increasing access to higher education funding through direct financial support for families.95% confidence

Sub-Topics Income Tax

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in committee · Michigan · House Oct 28, 2025

HB 4432: Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 282.

HB 4432 creates a $2,500 refundable state income tax credit for qualified volunteer emergency medical services (EMS) personnel in Michigan, effective for tax years beginning January 1, 2025. To qualify, volunteers must serve at least 10 hours monthly with a life support agency (like EMS organizations), receive no hourly wage or salary, and only be reimbursed for reasonable expenses or receive customary benefits. The credit requires a signed verification statement from the agency confirming the volunteer’s service hours, compliance with training standards, and non-salary compensation. This directly affects unpaid EMS volunteers who meet these criteria, reducing their state tax liability or providing a refund if the credit exceeds their tax bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for EMS volunteers, providing direct tax relief for public service workers.90% confidence ✓ HealthcareSupports HealthcareProvides $2,500 tax credit to volunteer EMS personnel, strengthening emergency medical services workforce stability and access to critical healthcare response.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Michigan · House Oct 28, 2025

HB 4431: Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

HB 4431 creates a new $2,500 state income tax credit for qualified volunteer firefighters in Michigan, effective for tax years beginning January 1, 2025. To qualify, individuals must serve at least 10 hours per month as unpaid volunteers (reimbursed only for expenses or standard benefits) with an organized fire department, verified by a written statement from the department head. The credit reduces tax liability, with any excess amount refunded to the taxpayer. This applies specifically to volunteer firefighters meeting the defined criteria, not paid staff or other volunteer roles.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $2,500 tax credit for volunteer firefighters, reducing tax liability and providing direct relief to public service workers, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Michigan · House Oct 28, 2025

HB 4041: Property tax: exemptions; continuation of poverty exemption, without subsequent application, for homeowner who previously established eligibility; provide for in certain circumstances. Amends sec. 7u of 1893 PA 206 (MCL 211.7u).

HB 4041 would automatically renew property tax exemptions for eligible homeowners who previously qualified under the poverty exemption program, eliminating the need for them to reapply annually. It directly affects low-income homeowners in Michigan who have already established eligibility for the exemption under current law. The bill amends Michigan law to require automatic continuation of this exemption in specified circumstances, reducing administrative burdens for qualifying residents. This change streamlines the process by removing annual application requirements for those already verified as eligible.

Topics ✓ Budget & TaxesSupports Budget & TaxesAutomatically renews property tax exemptions for low-income homeowners, reducing their tax burden and administrative hassle per tax relief indicators.90% confidence ✓ HousingSupports HousingAutomatically renews property tax exemptions for low-income homeowners, reducing financial burden and preventing displacement - directly advancing housing affordability for qualifying residents.92% confidence

Sub-Topics Property Tax Homeownership Property Taxes

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