Corporate income tax: rate; increasing of rate and revising the distribution of revenue collected; provide for. Amends secs. 623 & 695 of 1967 PA 281 (MCL 206.623 & 206.695).

This bill proposes to increase Michigan's corporate income tax rate from 6.0% to 10.0% starting on October 1, 2025, while also revising how the tax base is calculated. The legislation eliminates specific tax breaks for oil and gas and mineral production income and expenses, and it adjusts rules regarding interest, dividends, and payments for intangible assets to align more closely with federal tax calculations. Additionally, the bill changes how tax revenue is distributed by the state, shifting funds from the general fund to specific reserves for housing, community development, revitalization, and strategic outreach beginning in the 2025-2026 fiscal year. These changes directly affect corporations operating within Michigan and alter the flow of state tax revenue to various government funds.