Bill
HB 5256
Adds a Michigan individual income tax deduction for payments for certain physical facility services, reducing taxable income for eligible taxpayers (details TBD).
Status (as of documents provided)
- Introduced: March 14, 2025 (primary sponsor Rep. Mark Tisdel); electronically reproduced 11/12/2025 and introduced 11/12/2025 to the House and referred to the Committee on Finance.
- Committee activity: public hearings and committee substitute considered (April–May 2025); reported favorably as substituted (May 8, 2025).
- Companion: SB 2820.
- Sponsors: Mark Tisdel (primary); cosponsors Donni Steele, Thomas Kuhn, David Prestin, Kathy Schmaltz.
Purpose and intent
- HB 5256 proposes to amend section 30 of the Michigan Income Tax Act of 1967 (MCL 206.30) to add a new deduction to Michigan individual taxable income for payments made for certain “physical facility services.” The stated intent is to allow qualifying taxpayers to reduce their Michigan taxable income by the amount paid for those services.
What the bill would change (high-level)
- The bill amends the definition of “taxable income” in MCL 206.30 (the list of additions and subtractions to federal adjusted gross income used to calculate Michigan taxable income) by adding a new subtraction (i.e., a deduction) for specified physical facility services.
- The bill text provided in the packet is truncated and does not include the full definitional or eligibility language for the “certain physical facility services” deduction, so the summary cannot list precise qualifying services, caps, phase‑outs, documentation or certification requirements, or effective date(s).
Who would be affected
- Michigan individual taxpayers (residents, part‑year residents and nonresidents who apportion income) who make payments that qualify as the named “physical facility services” — assuming the final statutory definition in the bill includes services they purchase — would be able to deduct those payments from Michigan taxable income.
- State revenue: by expanding deductions from Michigan taxable income, the change would likely reduce individual income tax revenue to some degree (magnitude depends on scope, eligibility, and uptake); no fiscal estimate is included in the provided materials.
- Employers, service providers, and tax preparers may be affected by new reporting or withholding guidance if the deduction requires certification or third‑party reporting.
Key uncertainties and missing details
- The excerpt does not include the operative language defining which services qualify, whether there are dollar limits or income phase-outs, whether the deduction is refundable, or whether it is limited to residents. It also does not include an effective date.
- Fiscal impact and administrative guidance (department rules, required documentation, audit standards) are not included in the materials provided.
Procedural next steps and implementation considerations
- The bill must complete Committee on Finance deliberations (if not already), be reported to the full House, pass both legislative chambers (House and Senate), and be signed by the Governor to become law.
- If enacted, the Department of Treasury would issue guidance about qualification, documentation and any necessary changes to tax forms and instructions. A fiscal analysis would quantify revenue effects and implementation costs.
Where to find more information
- Full bill text and any committee substitute language (for precise definitions and limitations).
- Legislative fiscal analyses or the bill’s fiscal note (for revenue estimates).
- Companion Senate bill SB 2820 for parallel language or differences.
Note: This summary is based on the bill title, sponsor materials and a truncated excerpt of MCL 206.30 as provided. For exact statutory language and taxpayer eligibility, consult the full text of HB 5256 and any committee substitute or enacted version.
Compiled from official sources — confirm details with the bill’s official record.
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