LANSING, Mich. — Sen. Mike Shirkey on Wednesday supported passage of legislation to preserve the personal exemption on the state income tax and provide additional tax relief for Michigan families.
“The hardworking residents of Branch, Hillsdale, and Jackson counties deserve to keep more of the money they earn,” said Shirkey, R-Clarklake. “This bill will not only protect the personal exemption but provide further tax relief to residents across the state.”
The federal Tax Cuts and Jobs Act signed by President Trump in December 2017 simplifies the code, lowers tax rates, doubles the standard deduction and increases family tax credits. However, in streamlining the exemption process, it effectively ends the federal personal exemption.
Since the state personal exemption is based on the federal return, without a revision to state law, Michigan taxpayers would no longer be able to claim personal exemptions on their state taxes.
Senate Bill 748 would make the necessary changes to maintain the state personal exemption and also boost the exemption by an additional $700 to $5,000 by 2021. Currently, the state personal exemption is scheduled to increase from $4,000 to $4,300 over the next three years.
SB 748 now heads to the House for further consideration.