Budget & Taxes (Business Taxes)

in committee · Michigan · House Feb 19, 2026

HB 5519: Individual income tax: rate; rollback of rate to 3.9%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

HB 5519 lowers Michigan's individual income tax rate to 3.9% for tax years beginning January 1, 2026, replacing the current 4.25% rate. This change applies to all Michigan residents who pay state income tax on their earnings. The bill amends Section 51 of the Income Tax Act to implement this rate reduction, which follows a temporary 4.25% rate period through 2025. This policy directly reduces the tax burden for individual taxpayers starting in 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesLowers individual income tax rate from 4.25% to 3.9%, providing tax relief and reducing taxpayer burden per bill summary.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Michigan · House Jan 28, 2026

HB 5484: Individual income tax: flow-through entities; sourcing and apportionment provisions; update. Amends secs. 102, 103, 105, 110, 112, 115, 122 & 123 of 1967 PA 281 (MCL 206.102 et seq.) & repeals secs. 111, 113, 114, 131, 132, 133 & 134 of 1967 PA 281 (MCL 206.111 et seq.).

HB 5484 updates Michigan's tax rules for businesses operating across state lines, specifically clarifying how income from flow-through entities (like S-corps and partnerships) is allocated to Michigan for tax purposes. It revises sections of the Income Tax Act to better define when income earned outside Michigan must still be taxed by Michigan, particularly for nonresident business owners. Key changes include refining rules for sourcing income from services performed in Michigan, business activities conducted within the state, and capital gains on property. This directly affects business owners with multi-state operations who must now follow updated guidelines to determine Michigan's tax share.

Topics ✓ Budget & TaxesSupports Budget & TaxesUpdates tax sourcing rules for flow-through entities to clarify Michigan's jurisdiction over out-of-state income, preventing revenue loss and promoting fiscal responsibility.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Michigan · House Mar 4, 2025

HB 4143: Corporate income tax: revenue distribution; earmark to the Michigan transportation fund; provide for. Amends sec. 695 of 1967 PA 281 (MCL 206.695).

HB 4143 changes how Michigan allocates corporate income tax revenue. Starting in the 2025-2026 fiscal year, it directs $500 million annually to county road commissions and $500 million to cities/villages for local road projects. After 2026, all corporate tax revenue from this source will fund the Michigan Transportation Fund, which distributes money for state transportation projects. This directly affects local governments receiving road funding and state budget allocations for transportation infrastructure.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirects $500M annually to transportation funds for road projects, ensuring dedicated tax revenue allocation for infrastructure, aligning with funding essential public services.95% confidence ✓ TransportationSupports TransportationDirects $500M annually to local road projects and state transportation fund, explicitly earmarking corporate tax revenue for transportation infrastructure funding.95% confidence

Sub-Topics Business Taxes Revenue Transportation Funding

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in committee · Michigan · House Jun 11, 2025

HB 4603: Corporate income tax: rate; pay ratio surcharge for certain corporations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 684.

HB 4603 imposes a progressive surcharge on Michigan corporations required to disclose pay ratios under federal SEC rules (17 CFR 229.402(u)). The surcharge rate (0% to 50%) increases based on the corporation's disclosed CEO-to-median-worker pay ratio, starting October 1, 2025. It applies only to corporations already filing these SEC disclosures, with rates rising from 0% for ratios under 50:1 up to 50% for ratios of 500:1 or higher. The surcharge is calculated on the corporation’s state tax liability before credits and is administered under Michigan’s existing tax laws. It does not apply to corporations not required to file state tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes progressive corporate tax surcharge based on pay ratio, generating revenue and closing tax loophole for high-pay-ratio corporations95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill imposes surcharge on high CEO-to-median-worker pay ratios (500:1+), incentivizing reduced wage disparity and promoting equitable compensation for workers.90% confidence

Sub-Topics Business Taxes Fees & Licensing

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in committee · Michigan · House Dec 16, 2025

HB 4425: Corporate income tax: other; sustainable aviation fuel incentive program; create. Creates new act. TIE BAR WITH: HB 4424'25

House Bill 4425 creates the Sustainable Aviation Fuel Incentive Program in Michigan. This program aims to encourage companies to produce or blend sustainable aviation fuel (SAF) within the state by offering corporate income tax credits. The Department of Environment, Great Lakes, and Energy (EGLE) will administer the program, certifying SAF that meets specific criteria, including source materials, technical standards, and a minimum 50% reduction in life-cycle greenhouse gas emissions compared to traditional jet fuel. The bill sets an annual cap on the total amount of tax credits approved, starting at $4.5 million for the 2025-2026 fiscal year and increasing to $9 million annually thereafter.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate income tax credits for sustainable aviation fuel production, directly advancing tax incentive policy under Budget & Taxes.95% confidence ✓ EnergySupports EnergyCreates tax credits for sustainable aviation fuel production, promoting renewable energy development and 50% GHG reduction targets per program criteria.95% confidence ✓ EnvironmentSupports EnvironmentCreates tax credits for SAF production requiring 50% GHG reduction, directly promoting cleaner aviation fuel and reducing emissions per EGLE environmental criteria.95% confidence ✓ TransportationSupports TransportationCreates tax credits for sustainable aviation fuel production, promoting cleaner transportation infrastructure and reducing emissions in aviation sector.95% confidence

Sub-Topics Business Taxes Climate Change Airports

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passed both · Michigan · House Oct 30, 2025

HB 4128: Corporate income tax: credits; credit for advanced small modular reactor generated power; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: HB 4127'25, HB 4129'25, HB 4125'25, HB 4126'25, HB 4124'25

HB 4128 creates a new corporate income tax credit for businesses generating power from advanced small modular reactors (SMRs) in Michigan. It directly affects utility companies and energy developers investing in SMR technology by providing a financial incentive to offset project costs. The key provision adds Section 678 to Michigan's tax code, allowing qualifying entities to claim a credit against their state corporate income tax liability for SMR-generated electricity. This policy change aims to support clean energy development without specifying expected outcomes or endorsing particular technologies. The bill passed the House on October 28, 2025, and is now pending final approval in the Senate.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate income tax credit for SMR power generation, reducing tax liability for qualifying businesses per tax code amendment.95% confidence ✓ EnergySupports EnergyBill provides tax credit for SMR-generated power, incentivizing investment in advanced nuclear energy infrastructure, aligning with clean energy development goals.95% confidence ✓ TechnologySupports TechnologyProvides tax credit to incentivize investment in SMR energy technology, directly funding a specific tech sector per bill's financial incentive mechanism.95% confidence

Sub-Topics Business Taxes Nuclear Renewable Energy

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in committee · Michigan · House Nov 4, 2025

HB 5166: Corporate income tax: credits; charitable food tax credit program; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.

HB 5166 creates a new tax credit program to improve food security by allowing certain food businesses (like farms, processors, or distributors) to claim a 65% credit against their state income tax for donating food to certified organizations. Qualified organizations - such as food pantries, soup kitchens, shelters, or regional food banks - must apply for certification annually and provide donors with written acknowledgments detailing the donation. The credit is capped at 50% of the business’s tax liability or $10,000 per year, whichever is lower, and must be claimed with annual tax returns. This directly affects food businesses making donations and certified food providers serving communities facing hunger.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate tax credit (65% of donation value) to incentivize food donations, reducing business tax liability while supporting food security programs through fiscal policy.90% confidence

Sub-Topics Business Taxes

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in committee · Michigan · House Mar 4, 2025

HB 4142: Taxation: other; digital advertising services tax act; create. Creates new act.

HB 4142 would impose a progressive tax on large digital advertising companies operating in Michigan, with rates ranging from 2.5% to 10% based on their global annual revenue. Companies with over $1 million in annual Michigan digital ad revenue (defined as revenue from banner ads, search ads, and similar services) would be required to file annual tax returns starting in 2026, with quarterly estimated payments for those exceeding the threshold. The tax applies to revenue derived from digital advertising services accessed by Michigan users, calculated using a specific apportionment formula. Collected revenue would fund Michigan's school aid and transportation funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new tax on digital ad companies to generate revenue, aligning with fiscal responsibility and budget strengthening through new tax collection.90% confidence

Sub-Topics Business Taxes

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in committee · Michigan · House Mar 4, 2025

HB 4144: Corporate income tax: rate; rate increase and earmark of increased revenue to school aid fund; provide for. Amends secs. 623 & 695 of 1967 PA 281 (MCL 206.623 & 206.695).

HB 4144 increases Michigan's corporate income tax rate from 6% to 8.5% effective January 1, 2025, affecting corporations operating in the state. It directs a specific portion of the revenue increase - specifically, the amount attributable to the 2.5% rate hike - to the state school aid fund starting with the 2025-2026 fiscal year. The bill also allocates other portions of the tax revenue to housing, community development, and revitalization funds during the 2022-2025 fiscal years. This is a direct policy change altering tax rates and revenue distribution, not a procedural or commemorative measure.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases corporate tax rate to fund school aid, housing, and community development programs via explicit revenue earmarking.95% confidence ✓ EducationSupports EducationBill earmarks 2.5% corporate tax increase revenue to school aid fund, directly increasing K-12 education funding per legislative language.90% confidence ✓ HousingSupports HousingBill allocates tax revenue to housing, community development, and revitalization funds during 2022-2025 fiscal years per summary.95% confidence

Sub-Topics Business Taxes Revenue Community Development Property Development

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passed both · Michigan · House Mar 20, 2025

HB 4170: Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

HB 4170 permanently sets Michigan's individual income tax rate at 4.05% for all taxpayers, replacing a temporary 4.25% rate scheduled to take effect in 2024. It creates a mechanism where the rate could decrease further if state revenue growth exceeds inflation, requiring annual revenue reviews. The bill directly affects all Michigan residents who pay individual income tax. The change takes effect immediately for tax years beginning January 1, 2025, with the 4.05% rate now permanent unless triggered by the revenue growth condition.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently lowers individual income tax rate from 4.25% to 4.05%, providing tax relief and creating mechanism for potential further reductions if revenue growth exceeds inflation.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

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