LANSING - State Representative George T. Darany (Dearborn) introduced a bill today that would provide a tax credit toward the purchase of gas for residents who drive to their place of employment. HB 5476 was introduced to help alleviate the burden being placed on middle-class families as gas prices continue to rise.
“Rising gas prices are already a burden for many individuals in Michigan and our workers are having to take even more money out of their paychecks just for their daily commute,” said Darany. “Our vehicles help us seek and keep employment and provide for our families and this legislation will help Michigan residents with increasing transportation costs.”
The bill would provide a 50 percent or $100 tax credit, whichever is lower, for gas expenses for a taxpayer making $50,000 or less. It would also provide a 25 percent credit, or up to $75, for total gasoline expenses paid for an individual making between $50,000 and $75,000 and a 10 percent credit, or up to $50, for those making $75,000 to $100,000. Michigan has roughly 7.2 million vehicles registered in the state that annually use 4.3 billion gallons of gasoline and generated almost $830 million in taxes.
“The more money people can recover under this legislation, the more they can spend it at our small businesses in our communities or put in savings accounts,” said Darany. “Freeing up consumer dollars will not only help keep many Michigan residents working, but it will also expand opportunities for those seeking employment.”