Budget & Taxes (Tax Credits)

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.

HB 4816 creates a new individual income tax credit for Michigan residents who invest in certain Michigan businesses. It directly affects Michigan taxpayers who make qualifying investments in eligible local companies. The bill adds a specific provision to Michigan's tax code allowing these investors to claim a credit against their state income tax. This credit aims to incentivize personal investment in Michigan-based businesses through a direct tax benefit.

HB 5292 allows corporations with pre-2012 approved tax credits (for job creation or investment) to claim the remaining unused portion against their corporate income tax liability starting in 2026, spread equally over 10 years. To qualify, businesses must maintain at least 95% of their full-time jobs (35+ hours weekly with payroll taxes withheld) as of September 30, 2025, each tax year. The bill also repeals Michigan’s Business Tax Act (2007 PA 36) for tax years beginning after December 31, 2025, ending that separate tax system. This directly affects corporations holding unused credits from older economic development programs.