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HB 4513

Individual income tax: deductions; deduction for income attributable to bitcoin mining under the bitcoin program; provide for. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.). TIE BAR WITH: HB 4512'25

2025-2026 Regular Session Introduced by Will Bruck and 6 co-sponsors

Michigan bill creates state income tax deduction for bitcoin mining income to attract cryptocurrency operations while reducing state tax revenue from miners.

re-referred to Committee on Communications and Technology
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WeVote Research Nonpartisan
Bill Summary · HB 4513

Legislative bill overview

HB 4513 proposes to amend Michigan's income tax code to create a special deduction for individuals engaged in bitcoin mining activities. The bill would allow bitcoin miners to deduct income attributable to their mining operations from their state taxable income, effectively reducing their tax liability on those earnings.

Why is this important

Bitcoin mining is energy-intensive and capital-heavy, and this deduction could make Michigan more competitive in attracting cryptocurrency mining operations and related tech investment to the state. However, it also represents foregone tax revenue and raises questions about whether selective tax incentives for specific industries are equitable tax policy.

Potential points of contention

  • Revenue impact: The deduction reduces state tax revenue, which must either be offset by other revenue sources or result in lower funding for public services
  • Industry favoritism: Critics may argue this gives unfair tax advantages to cryptocurrency mining versus other technology or manufacturing sectors not receiving similar deductions
  • Environmental concerns: Bitcoin mining consumes substantial electricity; incentivizing it through tax breaks may conflict with climate and sustainability goals
  • Definitional clarity: The bill's language on what qualifies as "income attributable to bitcoin mining" may create ambiguity for tax administration and compliance

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

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