Michigan / State / 101st Legislature, 2021 Regular Session
2021 PA 120 (Senate Bill 25), amending MCL 206.30(1)(aa) Made a disabled veteran’s discharged student loan deductible from Michigan income
Added a subdivision to MCL 206.30 letting a disabled veteran deduct, to the extent included in adjusted gross income, income reported on a federal Form 1099-C attributable to the cancellation or discharge of a student loan by the United States Department of Education under the total and permanent disability discharge program, 34 CFR 685.213. A disabled veteran for this subdivision is one determined by VA to be permanently and totally disabled and entitled to benefits at the 100% rate, or rated individually unemployable. As enacted the subdivision reached the 2016 through 2019 tax years retroactively and each tax year from 2025 on; 2025 PA 24 (House Bill 4961) re-enacted it for tax years 2025 on only, which is why the compiled section no longer names the earlier years. Tracked because the federal exclusion for student loan discharges under the American Rescue Plan Act reached discharges occurring in 2021 through 2025, so for a discharge after that period the Michigan deduction is the operative relief rather than a duplicate of it. The Michigan subdivision carries no expiry date of its own.
Progress
Path to law: Bill in a two-chamber legislature
- Introduced Done,
- In committee Done, Senate Finance, then House Tax Policy after Senate passage
- Passed one chamber Done, Senate, 35-0
- Passed both chambers Done, House, 105-2
- Signed by the governor Done, Public Act 120 of 2021, effective on approval
- In effect Done,
Sponsors
- Tom Barrett
What it touches
- MCL § 206.30
Catalog entry
Official record
Read 2021 PA 120 (Senate Bill 25), amending MCL 206.30(1)(aa) on the jurisdiction's own record