The bill amends the Income Tax Act of 1967 by revising Section 623, which pertains to the corporate income tax imposed on taxpayers with business activities in Michigan. The new provisions establish a tiered corporate income tax rate that decreases over time, starting at 6.0% for business activities occurring before October 1, 2025, and gradually reducing to 4.25% for activities on or after October 1, 2030. This change aims to provide a more favorable tax environment for businesses operating in the state.

Additionally, the bill clarifies the definition of "oil and gas" and introduces a new definition for "state fiscal year," which runs from October 1 to September 30 of the following year. The amendments also include adjustments to the corporate income tax base, detailing specific inclusions and deductions related to business income, such as interest income, dividends, and expenses related to transactions with related parties. These changes are intended to streamline the tax calculation process and ensure that the tax code reflects current business practices.

Statutes affected:
House Introduced Bill: 206.623