MI SB0748

Adjusts Michigan income tax definitions to align with the Internal Revenue Code as in effect on January 1, 2018, or at taxpayer's option, for the applicable tax year.

Increases personal exemption amounts for tax years 2012-2021: rising from $3,950 (Oct 2012-Dec 2013) to $4,900 for the 2021 tax year, with amounts adjusted annually thereafter by Consumer Price Index.

Modifies retirement and pension benefit deductions based on taxpayer birth year and age, with different limitations for those born before 1946, between 1946-1952, and after 1952, and special provisions for those receiving government pensions not covered by Social Security.

Expands definitions of flow-through entities, gross receipts, and federal taxable income to include additional entity types and clarify treatment of various business transactions and capital dispositions.

Repeals sections 30e and 30f of the 1967 income tax act and takes effect immediately upon the Governor's approval on February 28, 2018.