Bill > HB5925

This bill amends Michigan's Income Tax Act of 1967 to adjust how corporate income tax is calculated by requiring businesses to "add back" certain expenses deducted on their federal tax returns. Specifically, it mandates that companies must add back any "specified outsourcing expenses" that were deducted federally, which are defined as business expenses related to eliminating a trade or business located in Michigan or relocating a business previously in Michigan to another state. This change aims to prevent companies from reducing their state corporate income tax liability by deducting costs associated with moving operations out of Michigan, while still allowing for legitimate business expenses and providing exceptions for transactions with a non-tax business purpose, arm's-length pricing, or if double taxation would occur.