HB 4183 Summary

• Modifies retirement and pension benefit deductions under Michigan's Income Tax Act by creating new age-based limitations effective after December 31, 2016.

• For persons born after 1945, limits combined deductions for certain retirement/pension benefits to $20,000 (single) or $40,000 (joint) before age 67, then allows unrestricted $20,000/$40,000 deduction at age 67 and beyond.

• For persons born after 1945 receiving government pensions not covered by Social Security, increases deduction limits to $35,000 (single) or $55,000/$70,000 (joint, depending on spouse's status), with higher limits available at age 67.

• Eliminates the prior three-tiered system based on birth years (1946-1952 and after 1952), replacing it with a simplified two-tier system based solely on whether taxpayer was born before or after 1945.

• Makes technical corrections including changing "subsection" to "subdivision" and "both the husband and wife" to "both spouses" for gender-neutral language.