SB-0860 Summary

• Adds a new deduction under Michigan's Income Tax Act allowing taxpayers to deduct compensation received pursuant to the Wrongful Imprisonment Compensation Act for tax years beginning after December 31, 2016.

• Modifies the definition of "taxable income" to include subdivision (z), which exempts wrongful imprisonment compensation from state income taxation to the extent included in adjusted gross income.

• Contains a conditional enacting clause requiring that either Senate Bill No. 291 or House Bill No. 4536 of the 98th Legislature must be enacted into law for this amendment to take effect.

• Makes technical corrections throughout the section, including changing "both" to "all" in subdivision (x) and updating references to the Michigan ABLE program act.

• Applies retroactively to tax years beginning after December 31, 2016, providing tax relief for individuals who received compensation for wrongful imprisonment.