© 2022 Michigan State University Board of Trustees
Play Live Radio
Next Up:
Available On Air Stations

Michigan House Approves Potential Tax Break for Exonorees

capitol photo
WKAR File Photo

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.

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.

Related Content
News from WKAR will never be behind a paywall. Ever. We need your help to keep our coverage free for everyone. Please consider supporting the news you rely on with a donation today. You can support our journalism for as little as $5. Every contribution, no matter the size, propels our vital coverage. Thank you.