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HB 4202

Individual income tax: exemptions; additional exemption for fetus; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

2025-2026 Regular Session Introduced by Greg Alexander and 22 co-sponsors

Michigan adds a new pregnancy-based personal exemption for taxpayers 10 weeks or more pregnant, physician-verified, reducing taxable income like existing exemptions.

bill electronically reproduced 03/11/2025
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Bill Summary · HB 4202

Summary — HB 4202 (Michigan): Additional Individual Income Tax Exemption for Pregnancy

Status: Introduced March 10, 2025; bill electronically reproduced 03/11/2025. Referred to House Committee on Finance. (House Fiscal Agency analysis complete to 5‑13‑25.)
Statute amended: MCL 206.30 (Income Tax Act of 1967)

Purpose

To create an additional personal exemption on Michigan individual income tax returns for taxpayers who are at least 10 weeks pregnant on the last day of the tax year and who meet specified medical-care verification requirements.

Key provisions

  • Adds an additional personal exemption for a taxpayer who is at least 10 weeks pregnant on the last day of the tax year.
  • Eligibility requires that the taxpayer has been under the care and observation of a physician since at least the 10th week of pregnancy.
  • The taxpayer must attach a physician-signed and dated medical statement to the annual Michigan income tax return verifying the pregnancy and that it was at least 10 weeks at year‑end.
  • Defines “physician” as an individual licensed to practice medicine or osteopathic medicine and surgery under Article 15 of the Michigan Public Health Code.
  • The additional exemption reduces taxable income in the same manner as the existing personal exemption. (For the 2025 tax year the personal exemption equaled $5,800 and is indexed annually to the Consumer Price Index.)

Who would be affected

  • Primarily pregnant taxpayers who meet the 10‑week and physician‑care requirements and who have sufficient Michigan taxable income to realize the exemption (i.e., taxpayers with no taxable income may not benefit).
  • The provision applies to individual taxpayers and interacts with existing rules that allow exemptions for taxpayers and dependents under MCL 206.30.

Fiscal impact

  • House Fiscal Agency estimates a reduction in Michigan income tax revenue of roughly $8.0 million to $10.0 million on a full‑fiscal‑year basis, after adjusting for birth rates, multiple births, timing of pregnancies during the year, and taxpayers who cannot use the exemption due to low/no taxable income.
  • Because much of the reduction would occur through refunds, the general fund is expected to bear the impact.

Background / notes

  • A similar bill in the 2021–22 session (House Bill 4644) proposed a comparable exemption but used a 12‑week threshold.
  • Legislative staff analysts: Alex Stegbauer (legislative analyst), Ben Gielczyk (fiscal analyst).
  • Source: House Fiscal Agency summary; amendment to MCL 206.30.

Note: The legislative package provided also included an unrelated Illinois HB 4202 (estate tax exclusion). This summary addresses the Michigan HB 4202 concerning an income‑tax exemption for pregnancy.

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

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