Bill > HB4144

This bill amends Michigan's Income Tax Act by increasing the corporate income tax rate from 6.0% to 8.5% starting January 1, 2025, and modifying how tax revenue is distributed. Currently, corporate income tax revenue goes primarily to the general fund, but the bill introduces a new allocation strategy. Beginning in the 2025-2026 fiscal year, the first $50 million will be deposited into the Michigan Housing and Community Development Fund, and any additional revenue attributable to the 2.5% rate increase will be directed to the State School Aid Fund. The bill aims to generate more funding for housing initiatives and education by increasing the corporate tax rate. The legislation also makes technical changes to tax calculation rules, such as how businesses calculate their taxable income, including adjustments for items like interest income, dividends, and expenses. These modifications provide more detailed guidance on how corporations should determine their tax liability under Michigan law, ensuring a more precise and comprehensive approach to corporate taxation.

Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4144