MI HB4776

Allows eligible taxpayers to claim a tax credit for qualified personal protective equipment (PPE) expenses incurred to prevent COVID-19 transmission, with a maximum credit of $25,000 per tax year.

For the 2021 tax year only, eligible taxpayers may claim a combined credit for PPE expenses from both 2020 and 2021 tax years, up to a maximum of $50,000.

Defines "eligible taxpayer" as individuals operating sole proprietorships, independent contractors, or self-employed individuals with 50 or fewer employees, or members of flow-through entities with 50 or fewer employees.

Qualified PPE expenses include gloves, masks, respirators, eye protection, gowns, cleaning products, hand sanitizers, and costs for retrofitting or installing equipment to prevent COVID-19 transmission.

Credits that exceed a taxpayer's tax liability for the year shall be refunded; taxpayers cannot claim the credit for expenses already deducted on their federal or state income tax returns.