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Bill > HB4961
MI HB4961
MI HB4961Individual income tax: income; treatment of certain provisions under the internal revenue code and revenue distributions; modify. Amends secs. 12, 30, 36, 607, 695 & 805 of 1967 PA 281 (MCL 206.12 et seq.) & repeals sec. 51d of 1967 PA 281 (MCL 206.51d). TIE BAR WITH: HB 4183'25, HB 4951'25, HB 4968'25
summary
Introduced
09/16/2025
09/16/2025
In Committee
10/02/2025
10/02/2025
Crossed Over
09/25/2025
09/25/2025
Passed
10/08/2025
10/08/2025
Dead
Signed/Enacted/Adopted
10/08/2025
10/08/2025
Introduced Session
103rd Legislature
Bill Summary
AN ACT to amend 1967 PA 281, entitled "An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement by lien and otherwise of taxes on or measured by net income and on certain commercial, business, and financial activities; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits, rebates, and refunds of the taxes; to create certain funds; to provide for the expenditure of certain funds; to impose certain duties and requirements on certain officials, departments, and authorities of this state; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal acts and parts of acts," by amending sections 12, 30, 36, 607, 695, and 805 (MCL 206.12, 206.30, 206.36, 206.607, 206.695, and 206.805), sections 12, 607, and 805 as amended by 2024 PA 177, sections 30 and 695 as amended by 2023 PA 4, and section 36 as amended by 2011 PA 38; and to repeal acts and parts of acts.
AI Summary
This bill makes several technical modifications to Michigan's income tax law, primarily focusing on how certain federal tax code provisions are treated for state tax purposes. The bill updates definitions and calculation methods for taxable income, particularly for tax years beginning in 2025 and beyond. Key provisions include modifications to how federal taxable income is calculated by adjusting or disregarding certain sections of the federal Internal Revenue Code, such as sections related to depreciation, research expenses, and business interest deductions. The bill also outlines specific revenue allocation rules for different state fiscal years, directing income tax revenues to various state funds including the general fund, Michigan housing development fund, and neighborhood road fund. Additionally, the bill includes provisions for how retirement and pension benefits are taxed, with different rules for taxpayers born in different years. The bill's implementation is contingent upon the passage of three other specific House Bills, and it is designed to align Michigan's tax code with changing federal tax regulations while maintaining specific state-level tax treatment.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Assigned Pa 24'25 With Immediate Effect (on 10/08/2025)
Official Document
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