MI HB4230

Amends Michigan income tax law to modify the definition of "taxable income" and adjust various deductions and exemptions for individuals.

Revises the "qualified business" investment deduction for initial equity investments of at least $100,000 made before December 31, 2009, requiring the taxpayer's share to be at least $25,000.00 and reinvestment within 1 year to qualify for gain deductions.

Maintains existing deductions for retirement/pension benefits, education savings accounts, military compensation, Holocaust victim settlements, and charitable distributions from retirement accounts.

Adjusts personal exemptions ($2,500.00 base) and additional exemptions for seniors ($1,800.00), disabled individuals ($1,800.00), and disabled veterans ($250.00 for tax years after 2007).

Indexes personal exemptions annually using the U.S. consumer price index, rounded to nearest $100.00 increment plus $200.00 base amount.