State Rep. Steve Carra and the Michigan House of Representatives voted last week to approve a plan to reduce taxes for working families and expand tax savings for seniors.
The plan, which would provide an estimated $2.5 billion in annual tax relief, is contained in Senate Bill 768.
Carra said the plan will reduce taxes for everyone, whether they’re retired or pursuing their career.
The plan would lower Michigan’s individual income tax rate from 4.25 percent to 3.9 percent. It would also allow parents to receive a child-tax credit of up to $500 per dependent under the age of 19.
In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all their income from the state income tax, or $40,000 for couples filing jointly.
Eligibility for this exemption currently begins at age 67.
The bill now advances to the Senate for consideration.