Michigan Senate Bill SB0209

Michigan 2025-2026 Regular Session

• Introduced: 4/16/25
• Refer: 4/16/25

Caption

Individual income tax: deductions; certain broadband expansion grants; deduct from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).

Impact

If enacted, this bill will have a significant impact on how taxable income is computed for individuals, especially those involved in or benefiting from broadband expansion initiatives. The inclusion of deductions for grant money intended for improving broadband service aims to encourage investment in this area, responding to the growing demand for digital access across Michigan. Potential beneficiaries of this law may include local businesses and community organizations that receive funding for broadband improvement projects. Additionally, the adjustments in the treatment of retirement benefits may foster increased financial stability among senior citizens.

Summary

Senate Bill No. 209 seeks to amend the 1967 Income Tax Act by adjusting the provisions related to taxable income and introducing specific deductions for grant money received for broadband expansion. The bill outlines how 'taxable income' will be defined and calculated for individuals, with specific measures that detail how various incomes and deductions shall be treated under state law. Among other adjustments, the bill includes provisions to ensure certain retirement and pension benefits are treated favorably for tax purposes, promoting equity and assistance for retirees and veterans.

Contention

There are, however, notable points of contention surrounding the implementation of this bill. One concern is whether the retroactive application of certain amendments could create confusion or inconsistency in tax calculations for previous years. Furthermore, advocates for digital access may push for greater clarity on how these broadband grants will be matched with local government investments or compliance requirements, while opponents may argue about the potential for increased complexity in tax code interactions. The bill could provoke discussions about local versus state control over taxation and resource allocation, particularly in how funds are distributed for broadband expansion.