Michigan House approves potential tax break for exonerees - WNEM TV 5

Michigan House approves potential tax break for exonerees

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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.

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