MI HB4396

Modifies deduction limitations for retirement and pension benefits for individuals born after 1952 who receive benefits from governmental agencies not covered by federal Social Security, effective January 1, 2018.

Allows individuals born after 1952 and retired as of January 1, 2013 to deduct up to $35,000 (single) or $55,000/$70,000 (joint) for certain pension benefits, with unrestricted deduction available after age 67.

Provides individuals born after 1952 who reach age 67 an unrestricted $20,000 (single) or $40,000 (joint) deduction available against all income types, provided they do not claim Social Security deductions or personal exemptions.

Allows affected taxpayers to elect alternative deductions if doing so reduces overall tax liability.

Act approved by Governor November 2, 2017; effective 91 days after final adjournment of 2017 Regular Session.