LANSING, Mich. (AP) - A bill advancing in Michigan’s Legislature would ensure wrongfully convicted inmates who receive state compensation fully qualify for a potential income tax break.
The legislation would exclude the payments from the definition of total household resources, which is used to decide if a homeowner or renter is eligible for a homestead property tax credit worth up to $1,500.
Federal law already exempts exonerees from the federal and state income taxes. The bill, which won House approval 107-2 Wednesday, would also codify that exonerees’ compensation is not subject to Michigan’s income tax.
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The legislation goes to the Senate. Republican Rep. Martin Howrylak of Troy says his bill is a follow-up to a 2016 law that provides $50,000 for each year someone has been wrongfully incarcerated.
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Online:
House Bill 4991: http://bit.ly/2w4IBQb
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