House Bill 4437 Summary

• Increases personal exemption from $3,700 to $4,000 per exemption beginning January 1, 2018, with subsequent annual adjustments for inflation using the midwest employment cost index.

• Increases special exemptions for disabled persons and qualified disabled veterans: from $1,800 to $2,600 for deaf/blind/disabled individuals, and from $250 to $400 for qualified disabled veterans, effective January 1, 2018.

• Phases out personal exemptions for higher-income taxpayers beginning January 1, 2018: single filers with taxable income between $80,000-$100,000 and joint filers with income between $160,000-$200,000 receive reduced exemptions, with complete phase-out above these thresholds.

• Adds ABLE savings account deductions allowing up to $5,000 annually for single filers and $10,000 for joint filers on contributions to Michigan ABLE programs, with corresponding adjustments for non-qualified withdrawals.

• Includes contingency language requiring passage of HJR K'17 (constitutional amendment) for the bill to take effect; repeals prior Section 30a effective January 1, 2018.