Bill > HB4287

This bill amends Michigan's Income Tax Act to modify tax deductions and provisions for individuals and businesses, with a specific focus on broadband expansion grants. For individual taxpayers, the bill creates a new tax deduction for grant money received from various state, local, federal, and other broadband expansion programs, allowing taxpayers to exclude these grants from their taxable income for tax years beginning on or after January 1, 2023. Similarly, for corporate and flow-through entity taxpayers, the bill provides the same deduction for broadband expansion grants. The bill requires taxpayers to add back to their taxable income any expenses, including depreciation, that are attributable to these grants. The broadband expansion grants covered include numerous federal and state programs aimed at improving internet access in underserved areas, such as the Rural Digital Opportunity Fund, the Reconnect Program, and Michigan's own Connecting Michigan Communities Grant Program. The bill is intended to be retroactive and applies to tax years beginning on or after January 1, 2023, providing tax relief for entities receiving grants to expand broadband infrastructure.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4287