Individual income tax: deductions; deduction for income attributable to bitcoin mining under the bitcoin program; provide for. Amends secs. 30, 623 & 815 of 1967 PA 281 (MCL 206.30 et seq.). TIE BAR WITH: HB 4512'25

Michigan House Bill 4513, introduced in 2025, proposes allowing individuals to deduct income earned from bitcoin mining under the state's bitcoin program from their taxable income. This means that if someone earns money by mining bitcoin through this program, they wouldn't have to pay state income tax on that portion of their earnings. The bill is linked to House Bill 4512, suggesting that both bills are intended to work together to establish and regulate the bitcoin program.

Supporters of HB 4513 argue that providing tax deductions for bitcoin mining income could attract cryptocurrency businesses and miners to Michigan, potentially boosting the state's economy and positioning it as a leader in the digital currency industry. They believe this incentive could lead to job creation and increased technological innovation within the state.

Critics of the bill express concerns about the environmental impact of bitcoin mining, which is known for its high energy consumption. They worry that incentivizing mining activities could lead to increased carbon emissions and strain on the state's power grid. Additionally, some argue that the tax deductions could reduce state tax revenues, potentially affecting funding for public services.