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 bill establishes 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. It also includes various adjustments to the corporate income tax base, such as the treatment of interest income, dividends, and business losses, ensuring that taxpayers can account for these factors when calculating their tax obligations. The amendments aim to streamline the tax process and provide clearer guidelines for businesses operating within Michigan.

Statutes affected:
House Introduced Bill: 206.623