Legislature Passes Tax Relief Plan

Liz Gullett

May 20, 2022

This week, the House and Senate passed a $2.5 billion plan providing tax reductions. Named the MI Family Inflation Relief Plan, it includes:

- $500 per child tax credit for those under 19
- Increasing the personal income tax deduction by $1,800
- Raising the personal exemption for seniors 67 and older to $21,800 for individuals and $43,000 for couples and tying subsequent increases to the rate of inflation
- Lowering the state income tax to 4%
- Restoring the Earned Income Tax Credit to 20%
- 100% property tax exemption for disabled military veterans and the spouses of those killed in action and setting a $2,000 cap for veterans more than 50% disabled but less than 100% disabled

House Bill 4568 will be sent to Governor Whitmer for her consideration, while Senate Bill 784 will be sent to the House and is expected to be taken up next week.

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