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SB 12

35th Senatorial District Local Act-1.

2025-2026 Session

Michigan expands dependent status to treat a fetus as a dependent for state income tax if the fetus is at least 12 weeks gestation and under physician care, starting 2025.

Passed 1st Reading
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Bill Summary · SB 12

SB 12 — Individual income tax: expand definition of “dependent” to include fetus

Status: Referred to Committee on Government Operations
Introduced: August 15, 2025
Statute amended: Income Tax Act of 1967, sec. 8 (MCL 206.8)

Main purpose

To amend Michigan’s statutory definition of “dependent” for individual income tax purposes by allowing a taxpayer to count a fetus as a dependent if specific medical/gestational criteria are met. The change is keyed to tax years beginning on or after January 1, 2025.

Key provisions

  • Adds a new category to the statutory definition of “dependent” in MCL 206.8(c):
    • For tax years beginning on and after January 1, 2025, a “fetus” may be treated as a dependent if, as determined by a physician:
    • The fetus had completed at least 12 weeks of gestation as of the last day of the tax year; and
    • The fetus had been under the care and observation of a physician since at least 12 weeks of gestation.
  • Definitions included in the amending language:
    • “Fetus” — an individual organism of the species Homo sapiens at any time before complete delivery from a pregnant woman.
    • “Physician” — an individual licensed to practice medicine or osteopathic medicine and surgery under the Michigan Public Health Code (article 15, MCL 333.16101–333.18838).
  • The bill amends only the state law definition of “dependent”; it does not (on its face) amend federal tax rules or other state tax code provisions beyond sec. 8.

Who would be affected

  • Individual income taxpayers who are pregnant or who otherwise would claim the fetus as a dependent under state rules — potentially enabling additional dependent-related tax benefits under Michigan law where such benefits depend on the “dependent” definition.
  • Tax preparers, accountants, and tax software vendors (must incorporate the new dependent category and any documentation requirements).
  • Physicians (indirectly) — determinations or documentation that a fetus met the 12-week and care requirements may be relied upon by taxpayers; this could raise questions about acceptable documentation.
  • Michigan Department of Treasury — responsible for administering and enforcing the changed definition and for guidance on documentation and claiming procedures.

Implementation/timing and process

  • The new dependent category is expressly tied to tax years beginning on or after January 1, 2025.
  • Current status (per the information provided): referred to the Committee on Government Operations. Next steps are committee hearings, possible amendments, committee votes, and then floor consideration.

Potential impacts and considerations

  • Tax liability/state revenue: Expanding the statutory dependent definition could change taxpayers’ state income tax liabilities (if Michigan tax benefits—exemptions, credits, or deductions—attach to dependents). The bill text does not include a fiscal note here; the net revenue impact would depend on how many taxpayers claim a fetus and on which specific tax benefits apply.
  • Administrative and documentation issues: The physician-based criterion (12 weeks + ongoing care) creates a need for clear documentation guidance (what records suffice, how to substantiate claims on audit).
  • Interaction with federal law: Federal dependency rules (IRC §152) do not treat a fetus as a dependent; taxpayers and administrators will need guidance on differences between state and federal treatment.
  • Legal and privacy issues: Use of medical/physician information for tax claims could raise confidentiality and verification questions; the bill does not specify documentation or privacy safeguards.

Things to watch

  • Committee hearings and any amendments that clarify required documentation, verification procedures, or limits on which tax benefits attach to a fetus counted as a dependent.
  • Official fiscal analysis from the Department of Treasury or legislative fiscal staff estimating revenue effects.
  • Guidance from the Department of Treasury specifying acceptable physician documentation and claiming procedures.

Compiled from official sources — confirm details with the bill’s official record.

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