The bill amends the Income Tax Act of 1967 to redefine "taxable income" for individuals, introducing new deductions and clarifying existing provisions. Key changes include allowing deductions for compensation received under the wrongful imprisonment compensation act, specific tax relief for disabled veterans regarding student loan cancellations, and adjustments to retirement benefits for members of the Michigan National Guard. The bill also establishes limits on deductions for senior citizens based on their birth year, eliminates certain provisions related to oil and gas income, and introduces new deductions for contributions to ABLE savings accounts, with maximum amounts adjusted annually based on the Consumer Price Index.

Additionally, the bill provides specific deductions for disabled veterans and first-time home buyers, defines "disabled veteran," and allows for the deduction of wagering losses starting in the 2021 tax year. It revises personal exemptions, allowing a personal exemption of $3,700 multiplied by the number of exemptions claimed, and introduces additional exemptions for taxpayers with a certificate of stillbirth and for disabled individuals. The bill also outlines deductions for retirement and pension benefits, particularly for those born between 1946 and 1966, and allows public safety employees to deduct retirement benefits without limitations. Notably, it deletes certain language regarding related transactions and replaces it with more precise criteria, ensuring compliance with federal tax regulations while enhancing tax relief for specific groups.