This bill amends the Income Tax Act of 1967 by updating the corporate income tax rates and the allocation of tax revenue. Specifically, it establishes a corporate income tax rate of 6.0% before October 1, 2026, and a rate of 10.0% beginning on and after that date. The bill also modifies the definition of the corporate income tax base and includes various adjustments related to business income, such as the treatment of interest income, dividends, and expenses related to intangible assets. Additionally, it clarifies the process for carrying forward business losses incurred after December 31, 2011.

Furthermore, the bill revises the distribution of revenue collected from the corporate income tax for the state fiscal years 2024-2029. It specifies that a portion of the revenue will be allocated to the general fund, the Michigan housing and community development fund, and the neighborhood roads fund, among others. Notably, it replaces references to the general fund with the state school aid fund for certain fiscal years, ensuring that a significant portion of the tax revenue supports education funding.

Statutes affected:
House Introduced Bill: 206.623, 206.695