SB 1128 Summary

• Amends Michigan's Income Tax Act to modify deductions for retirement/pension benefits, senior citizens, and families by eliminating certain age and income-based restrictions that were in effect.

• Restores a $600 dependent exemption for children under 19 years old and adjusts personal exemptions starting in 2013 based on the consumer price index.

• Creates a new education credit (Section 274) allowing residents with adjusted gross income of $200,000 or less to claim 8% of tuition and fees paid to qualified in-state institutions of higher learning, up to $375 per student per year for up to 4 years.

• Modifies homestead property tax credits (Sections 520 and 522) by removing the $135,000 taxable value limitation and increasing the income threshold for credit reductions from $41,000 to $73,650 for all claimants.

• Eliminates income-based restrictions on retirement and pension benefit deductions for senior citizens born before 1946 and removes age-based limitations for those born after 1945.