State Rep Mark Tisdel: Tax Cuts for Families and Small Business, Discussion on Clean Energy Programs
Feb 24: Rep. Tisdel, panel approve tax cut for families, small businesses
State Rep. Mark Tisdel, majority vice chair of the House Committee on Tax Policy, today approved a plan to reduce taxes for individuals and small businesses and expand tax savings for seniors.
House Bill 5838, which would provide $1.7 billion in annual tax relief, received approval from the committee today.
“Grocery store shelves are marked by higher price tags, demanding more from working families and retired workers now trying to enjoy their golden years,” said Tisdel, R-Rochester Hills. “Between the pandemic, inflation, supply chain delays and staffing challenges, small businesses have also endured a rough few years. A measured tax cut would help reduce the state’s burden on the people of Greater Rochester. With more money in their pockets, families and local businesses will be better positioned to weather the economic storm we all face.”
House Bill 5838 would lower Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on families, as well as small businesses that pay taxes at the individual level.
Tisdel previously led a successful tax reform effort for the small businesses that pay the individual income tax, known as flow-through entities. Last year, he spearheaded passage of a new law to help these businesses save on their federal taxes by opting into an alternate tax structure. The proposed rate reduction in HB 5838 would apply regardless of whether the business pays the income tax or the alternate tax.
In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all income from the state income tax, or $40,000 for couples filing jointly. Eligibility for this exemption currently begins at age 67. The plan would further enable seniors to deduct retirement income — such as pensions, 401(k) plans and individual retirement accounts — not already included in the first exemption. This additional deduction would also allow up to $20,000 for individual filers and $40,000 for joint filers.
HB 5838 now advances to the entire House of Representatives for consideration.
Feb 23: Rep. Tisdel discusses plan to keep local clean energy programs while protecting taxpayer dollars
State Rep. Mark Tisdel today delivered testimony before the House Energy Committee in support of his bipartisan plan to ensure local governments do not take on bonded debt for clean energy financing programs.
Property Assessed Clean Energy (PACE) programs, created under state law by county, city, township and village governments, help local businesses obtain financial backing to install or improve renewable energy systems at a commercial or industrial property, as well as to modify a property or install equipment to help conserve energy. The borrower may repay the loan through assessments on the property, collected along with the owner’s property taxes.
Tisdel, R-Rochester Hills, sponsored House Bill 5761, which would prevent local governments from issuing future bonds or notes to finance PACE programs.
“In communities throughout Michigan, PACE programs have helped local business owners conserve energy at their properties,” Tisdel said. “With any governmental program, fiscal responsibility is crucial. Ensuring local governments do not add debt to pay for PACE programs will protect taxpayers’ money while continuing to help businesses protect the environment.”
Tisdel introduced the bill to accompany HBs 5011 and 5012, which would allow PACE financing to support projects at multifamily residences with at least four units and at agricultural properties. Projects eligible for PACE financing would be expanded to include environmental hazard projects, such as mitigation of water contamination and protection against severe weather. The bills would also ensure that energy projects at newly constructed or significantly renovated buildings would exceed certain requirements under Michigan energy and construction laws.
In 2013, when he served on the Rochester Hills City Council, Tisdel helped approve the city’s creation of its PACE program, which has helped connect local property owners to financing through a private lender, not funded by taxpayer dollars.
HB 5761 remains under consideration by the committee.
Feb 23, 2022, from office of 45th District Michigan House Representative Mark A. Tisdel