MI HB5545

Amends Michigan's income tax law to add a new section 30b providing an alternative method for calculating taxable income for tax years 2019 and beyond.

For the 2019 tax year, allows taxpayers to use the lesser of: (a) taxable income calculated under existing section 30, or (b) the average of their 2018 and 2019 taxable income.

For the 2020 tax year and thereafter, allows taxpayers to use the lesser of: (a) current year taxable income, or (b) the average of the current tax year and the immediately preceding 2 tax years.

Permits taxpayers who were not Michigan residents in 2018 or any tax year after 2018 to claim zero taxable income for years they were not residents, regardless of income in other states.

Maintains all existing income adjustments, deductions, exemptions, and limitations under section 30 while providing this income-averaging alternative option.