The bill amends the Income Tax Act of 1967, specifically sections 623 and 695, to adjust the corporate income tax rates and the distribution of tax revenue. The corporate income tax will be set at a rate of 6.0% until January 1, 2025, after which it will increase to 8.5%. Additionally, the bill outlines the corporate income tax base and specifies various adjustments to be made in calculating taxable income, including provisions for business losses and the treatment of income from oil and gas production.

Furthermore, the bill modifies how revenue collected from the corporate income tax is allocated. It mandates that starting from the 2025-2026 state fiscal year, $50,000,000 must be deposited into the Michigan housing and community development fund, with additional provisions for revenue increases attributable to the tax rate hike to be directed to the state school aid fund. The remaining revenue will continue to be deposited into the general fund, ensuring a structured approach to the distribution of tax revenues while addressing community and educational funding needs.

Statutes affected:
House Introduced Bill: 206.623, 206.695