SB 301 establishes a corporate income tax credit for employers who offer paid leave to employees donating organs. Beginning in 2026, eligible employers can claim a credit equal to 100% of the wages paid to an employee during up to 12 weeks of organ donation leave. To qualify, this leave must be separate from other paid leave benefits and compensate the employee at their full normal wage. The credit is non-refundable but can be carried forward for up to three years to offset future tax liabilities.
House Bill 4424 proposes a new corporate income tax credit for businesses that produce or blend sustainable aviation fuel (SAF) within Michigan. Qualified taxpayers can claim a credit of $1.50 per gallon for SAF produced or blended in the state and sold for use in aircraft departing from Michigan airports. This credit can increase up to $2.00 per gallon based on the SAF's life-cycle greenhouse gas emission reductions. If the credit amount exceeds a company's tax liability, the difference will be refunded.
HB 4737 gradually reduces Michigan's corporate income tax rate over time. It sets a schedule where the rate starts at 6.0% for business activity before October 1, 2025, then steps down to 5.5% in 2025-2026, 5.25% in 2026-2027, 5.0% in 2027-2028, 4.75% in 2028-2029, 4.5% in 2029-2030, and finally 4.25% starting October 1, 2030. The bill directly affects corporations conducting business in Michigan, applying these changing rates to their taxable income base. It does not alter the tax base calculations or other provisions of the corporate income tax code.
HB 4721 creates tax credits for biodiesel sales and production in Michigan, effective 2025-2030. Retail fuel dealers receive credits of $0.02-$0.07 per gallon for selling biodiesel blends (6-9%, 10-19%, or 20%+), while biodiesel producers get $0.02 per gallon. Total credits are capped at $16 million annually for retailers and $2 million for producers, with excess claims distributed proportionally. The bill directly affects Michigan fuel retailers and biodiesel producers by reducing their income tax liability based on specific blend volumes sold or produced.
SB 417 changes how Michigan distributes corporate income tax revenue. Starting in the 2026-2027 fiscal year, it permanently allocates $50 million annually to the Michigan housing fund and $60 million (adjusted for inflation each year) to the beverage container handling fund, after prior allocations to other state funds. The bill also specifies that remaining tax revenue after these allocations goes to the general fund. This policy directly affects state budgeting by redirecting specific portions of corporate tax revenue to these designated funds, with the beverage container fund allocation being a new, permanent feature.
SB 561 amends Michigan's sales tax law to change how revenue is distributed. It allocates 8.6% of the 4% general sales tax (starting October 1, 2025) to a new Revenue Sharing Trust Fund for distribution to cities, villages, townships, and counties. The bill also directs computer software sales tax revenue ($9-12 million annually) to the Michigan Health Initiative Fund and splits aviation fuel tax revenue (35% to the state aeronautics fund, 65% to airport funds). These changes affect local governments, public schools (via school aid fund allocations), airports, and health programs, without altering the overall tax rates.
SB 573 modifies Michigan's corporate income tax law to change how tax revenue is distributed. It revises Section 51 of the tax code, adds new Sections 51a and 695a, and removes several existing sections (51d-f, 51h, 476, 695). The bill directly affects businesses paying corporate income tax in Michigan by altering the formulas or rules for allocating tax revenue. These changes focus on updating the legal framework for revenue distribution without creating new tax rates or programs.
SB 235 creates a corporate income tax credit for businesses that use sustainable aviation fuel (SAF). It directly affects airlines and fuel producers in Michigan by reducing their state tax liability based on the volume of SAF they utilize. The bill amends Michigan's tax code (MCL 206.1-206.847) to add a specific provision allowing corporations to claim this credit. This provides a financial incentive for adopting SAF, aiming to support cleaner aviation fuel adoption without specifying environmental outcomes.
SB 236 creates a tax credit program in Michigan to incentivize the production of sustainable aviation fuel (SAF). It directly affects fuel producers who meet specific environmental standards, requiring SAF to achieve at least a 50% reduction in life-cycle greenhouse gas emissions compared to petroleum fuel and comply with ASTM aviation fuel standards. Producers must apply to the Department of Environment, Great Lakes, and Energy for certification of their tax credit, providing evidence of domestic production, emissions reduction, and proof that the fuel was used in aircraft departing Michigan airports. The program administers tax credits through a state-certified process, aiming to boost local SAF production while meeting federal environmental benchmarks.
HB 4825 would create a tax credit for businesses that sell beverages in returnable containers (like soda cans or bottles), allowing them to deduct $0.005 per container sold from their Michigan corporate income tax starting in 2026. The credit amount would automatically increase each year based on inflation (using the U.S. Consumer Price Index) beginning in 2027. To claim the credit, businesses must attach a specific report (required under existing law) with their annual tax return. This policy directly affects beverage distributors who manage deposit systems for returnable containers, reducing their tax liability or generating refunds if the credit exceeds their tax bill.
