Bill > SB0573

This bill modifies the corporate income tax revenue distribution in Michigan, making several key changes to how income tax revenues are allocated starting October 1, 2025. The bill adjusts the percentage of tax collections that will be deposited into various state funds, including the state school aid fund (which will receive 1.040% of gross collections), the agricultural preservation fund (3.5% of farmland tax credits), the Renew Michigan fund ($69 million), the Michigan transportation fund ($600,000), the state brownfield redevelopment fund (construction and income tax capture revenues), and the good jobs for Michigan fund (withholding tax capture revenues for certified new jobs). Additionally, the bill repeals several existing sections of the income tax act related to revenue distribution and specifies that all remaining revenue collected under the income tax will be distributed to the general fund. The bill also maintains the existing income tax rates and includes provisions for potential rate adjustments based on inflation and general fund revenue increases, ensuring flexibility in the state's tax policy while providing clear guidelines for revenue allocation across different state initiatives and funds.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0573