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SB 209

Individual income tax: deductions; certain broadband expansion grants; deduct from taxable income. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.).

2025-2026 Regular Session Introduced by Stephanie Chang and 4 co-sponsors

Michigan bill allowing tax deductions for broadband expansion grant recipients to incentivize rural/underserved area infrastructure development while reducing state tax revenue.

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WeVote Research Nonpartisan
Bill Summary · SB 209

Legislative bill overview

SB 209 would allow Michigan taxpayers to deduct certain broadband expansion grants from their taxable income. The bill modifies the Michigan Income Tax Act to create a tax deduction for individuals who receive grants intended to expand broadband infrastructure or access.

Why is this important

Broadband expansion is a significant policy priority for rural and underserved communities, and this tax provision could incentivize participation in grant programs by reducing the tax burden on recipients. However, the deduction's actual impact depends on grant program details and how many individuals would qualify, which could affect state tax revenue.

Potential points of contention

  • Revenue impact: The state loses tax revenue from deducted grants; the fiscal effect depends on grant program scope and uptake rates, which aren't detailed in the bill description
  • Equity concerns: The benefit primarily accrues to grant recipients (likely businesses or property owners in underserved areas), raising questions about whether this is the most effective way to support broadband expansion versus direct funding
  • Scope ambiguity: The bill references "certain" grants without clear definition, leaving questions about which broadband grants qualify and whether this could create interpretation disputes or unintended consequences

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

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