Bill > HB5292

This bill amends the Michigan Income Tax Act to provide rules for how corporations can claim certain "certificated credits" against their corporate income tax liability between 2026 and 2036. A certificated credit is a specific type of tax credit that was originally issued under the Michigan Business Tax Act before 2012, either through a preapproval letter or an agreement with the Michigan Economic Growth Authority. Under the new provisions, taxpayers with these credits can claim the remaining balance in equal installments over 10 years, beginning in 2026, but only if they maintain at least 95% of their full-time jobs in Michigan as of September 30, 2025. A "full-time job" is defined as a position of 35 or more hours per week where income and Social Security taxes are withheld. If the credit amount exceeds the taxpayer's tax liability in a given year, the excess will be refunded. The bill also includes a provision to completely repeal the Michigan Business Tax Act for tax years beginning after December 31, 2025, effectively phasing out the old tax system and transitioning fully to the new corporate income tax structure. The bill is tied to another piece of legislation (House Bill 5293) and will only take effect if that companion bill is also enacted.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5292