Michigan House Bill HB4747

Michigan 2025-2026 Regular Session

• Introduced: 7/29/25
• Refer: 7/29/25

Caption

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).

Impact

The ramifications of HB4747 on state laws include a potential reduction in taxable income for those who make contributions to 529 education savings plans. By incentivizing saving for education, the bill may positively affect the financial landscape for families preparing for educational expenses. The adjustments to retirement benefits taxation cater to public safety workers, which acknowledges their service while potentially reconfiguring the tax burden across different income groups. This could stimulate further savings among individuals focusing on their future or their children's education.

Summary

House Bill 4747 aims to amend the Income Tax Act of 1967 by providing tax deductions specifically for contributions made to 529 education savings plans and adjusting how retirement benefits for public employees are taxed. The bill introduces provisions that allow individuals to deduct contributions made to education savings accounts, encouraging saving for higher education costs. This aligns with state efforts to support educational funding and foster a culture of saving for the future.

Contention

Key points of contention surrounding HB4747 include how it treats retirement benefits of public safety workers and the equity of tax deductions for education savings plans. Critics may argue that focusing tax benefits on specific demographics could inadvertently leave out other vulnerable groups who might not have the same access to educational savings plans or retirement benefits as public employees. Additionally, how the state offsets these deductions within its budget could become a contentious issue if the tax base contracts as a result.