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  • “pension tax”

2023 House Bill 4001 / Public Act 4

Individual income tax: retirement or pension benefits; limitations and restrictions on deductions of certain retirement or pension benefits, revenue distributions, earned income tax credit, rebate payments, rebate and revitalization and placemaking funds; revise, increase, and provide for.

Mackinac Center Analysis

Phases in exemptions for pension income but not other sources of retirement income; increase a refundable tax credit based on income and dependents; and earmark money from the Corporate Income Tax to selective business subsidy programs.
  • Introduced by Rep. Angela Witwer (D-76) on Jan. 12, 2023
  • Passed 67 to 41 in the House on Jan. 26, 2023
  • Substitute concurred in by the Senate on Feb. 1, 2023
  • Passed 20 to 18 in the Senate on Feb. 1, 2023
  • Substitute not concurred in by the House on Feb. 1, 2023
  • Conference report adopted by the House on Feb. 9, 2023
  • Conference report adopted by the Senate on Feb. 16, 2023
  • Signed by Gov. Gretchen Whitmer on March 7, 2023

2023 Senate Bill 1

Individual income tax: retirement or pension benefits; limitations and restrictions on deductions of certain retirement or pension benefits and revenue distribution to state school aid fund; revise.

Mackinac Center Analysis

Phases in an exemption for pension income from state income taxes. Upon Senate passage: Exempts $56,961 of pension, social security or other annuity income from state income taxes for single filers and twice as much for joint filers. Increase the amount of income taxes earmarked to school purposes.

2021 House Bill 4733

Allow state employees to use retirement account contributions to purchase annuity

2021 House Bill 4734

Let school employees use retirement contributions to purchase annuity

2019 House Bill 4171 / 2020 Public Act 65

Revise income tax pension exemption

2017 House Bill 5034

Revise details of cap on income tax pension exemption

2017 House Bill 4396 / Public Act 149

Authorize some income tax pension exemptions

2017 Senate Bill 266

Authorize some pension income tax exemptions

2015 House Bill 4338

Let local school districts not state manage 401k-type contracts

2015 Senate Bill 343 / 2016 Public Act 136

Prorate unfunded university pension “catch up” costs