To increase the $4,000 personal exemption that is currently allowed under the Michigan state income tax. The bill would immediately increase it to $4,300 and then to $4,600 by 2020, which with inflation adjustments is projected to be worth around $5,200 by then. Taxpayers can claim a personal exemption for themselves, their spouse and each dependent, and these are subtracted from the amount of income that is subject to income tax.   Official Text and Analysis.

With the recommendation that the substitute (H-4) be adopted and that the bill then pass.

To clarify that a provision requiring money be allocated to compensate for any revenue decline triggered by the bill apply only to school aid fund revenue declines.

To increase the personal exemption much more by changing the formula used in making inflation adjustments to the exemption amount. This formula essentially serves as an "alternative" exemption-setting device.

To gradually increase the exemption to $4,700 by 2020, and revise an inflation-adjustment formula in the law that would make the exemption worth around $5,400 by then.

To increase the $4,000 personal exemption that is currently allowed under the Michigan state income tax. The bill would immediately increase it to $4,300 and then gradually to $4,800 in 2021. Taxpayers can claim a personal exemption for themselves, their spouse and each dependent, and these are subtracted from the amount of income that is subject to income tax. The Senate has passed a version that increases the exemption to $4,700 by 2020.

With the recommendation that the bill pass.