MI HB4051

Creates a new state income tax deduction for tipped employees, allowing them to exclude gratuities (tips) from taxable income beginning January 1, 2025

Defines "tipped employee" as someone who regularly receives more than $30 per month in gratuities, with qualifying tips being those reported to employers for federal FICA purposes

Removes outdated effective date language throughout the bill (striking references like "Beginning January 1, 2012" and "For tax years that begin after December 31, 2018")

Updates statutory citations for the federal Social Security Act from "chapter 531, 49 Stat 620" to "42 USC 301 to 1397mm"

Extends the student loan discharge deduction for disabled veterans to tax years beginning on and after January 1, 2025 (previously limited to 2016-2019 tax years)