Bill > HB4057

This bill amends Michigan's income tax law to introduce a new tax deduction for child care savings accounts starting in tax year 2026. Specifically, taxpayers will be able to deduct contributions to a child care savings account, up to $10,000 for single returns and $20,000 for joint returns per tax year. Taxpayers can also deduct interest earned on these accounts. If funds are withdrawn for non-qualified purposes, the taxpayer will need to add back the previously deducted amount to their taxable income. The bill is contingent on the passage of House Bill 4056, which means it will only take effect if that companion bill becomes law. This new provision is part of a series of targeted tax deductions Michigan has been implementing in recent years for specific savings accounts, such as education savings accounts, ABLE savings accounts, and first-time home buyer savings accounts, aimed at providing tax incentives for specific types of financial planning and expense management.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4057