Bill > HB6134

This bill proposes to amend Michigan's Income Tax Act of 1967 by increasing the corporate income tax rate and revising how the collected revenue is distributed. Specifically, the corporate income tax rate will be 6.0% until October 1, 2026, and then will increase to 10.0% thereafter. The bill also significantly alters the distribution of revenue collected from this tax, shifting a larger portion towards the neighborhood roads fund and the state school aid fund in later fiscal years, while reducing allocations to other funds like the strategic outreach and attraction reserve fund and the general fund. The "corporate income tax base" refers to a company's business income after certain adjustments, and "business activity" refers to a company's operations within the state.