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 language 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 provisions for the treatment of business losses, allowing taxpayers to carry forward losses to offset future corporate income tax bases for up to ten years. The amendments reflect a comprehensive approach to corporate taxation, aiming to enhance the state's economic competitiveness while ensuring clarity in tax regulations.

Statutes affected:
House Introduced Bill: 206.623