Budget & Taxes (Business Taxes)

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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in committee · Michigan · Senate Mar 5, 2025

SB 117: Individual income tax: rate; repeal of the personal income tax; provide for. Amends title & sec. 601 of 1967 PA 281 (MCL 206.601) & repeals pt. 1, pt. 3 & pt. 4 of 1967 PA 281 (MCL 206.1 - 206.532, 206.701 - 206.725 & 206.801 - 206.847).

SB 117 repeals specific sections of Michigan's corporate income tax provisions (MCL 206.1-206.532, 206.701-206.725, and 206.801-206.847) that governed corporate tax rates and reporting. The bill directly affects corporations previously subject to these repealed tax rules by eliminating those requirements. Key mechanism: it removes the referenced corporate tax sections from Michigan's tax code without replacing them. This is a procedural repeal of existing corporate tax provisions, not a new tax or personal income tax change. The bill is in early committee review (introduced March 5, 2025).

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals corporate tax provisions (MCL 206.1-206.532, etc.), eliminating tax collection from corporations and reducing state revenue. Directly weakens tax system.85% confidence

Sub-Topics Business Taxes Income Tax

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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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signed · Michigan · Senate Jul 29, 2026

SB 301: Corporate income tax: credits; employer credit for paid organ donation leave; provide for. Amends secs. 30 & 623 of 1967 PA 281 (MCL 206.30 & 206.623) & adds secs. 279 & 679.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates corporate tax credit for paid organ donation leave, providing direct tax relief through a new credit mechanism under tax policy.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill establishes tax credit for paid organ donation leave, expanding employee benefits under employment standards by ensuring full wage compensation during medical leave.90% confidence

Sub-Topics Business Taxes Paid Leave

in committee · Michigan · House Dec 16, 2025

HB 4424: Corporate income tax: credits; credit for use of sustainable aviation fuel; provide for. Amends 1967 PA 287 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: HB 4425'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides corporate tax credit for SAF production, directly reducing tax liability for qualifying businesses under state tax code, advancing fiscal incentives for economic activity.95% confidence ✓ EnergySupports EnergyProvides tax credit for sustainable aviation fuel production, promoting renewable energy use and reducing emissions per bill's tax incentive structure.95% confidence ✓ EnvironmentSupports EnvironmentTax credit incentivizes SAF production with emission reduction bonuses, directly reducing aviation GHG emissions per bill's credit structure and subject classification.90% confidence ✓ TransportationSupports TransportationBill provides tax credits for sustainable aviation fuel (SAF) production, directly promoting sustainable aviation - a transportation infrastructure component - aligning with 'promotes sustainable transportation' indicator.85% confidence

Sub-Topics Business Taxes Climate Change Airports

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in committee · Michigan · House Jul 22, 2025

HB 4737: Corporate income tax: rate; incremental rollback of rate to 4.25%; provide for. Amends sec. 623 of 1967 PA 281 (MCL 206.623).

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesGradual corporate tax rate reduction from 6.0% to 4.25% provides tax relief for businesses, directly advancing tax policy under Budget & Taxes.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Michigan · Senate Sep 3, 2025

SB 514: Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: SB 512'25

SB 514 creates a corporate income tax credit for beverage distributors who charge deposits on returnable containers. It allows eligible distributors to claim a $0.005 credit per container sold starting in 2026, with annual adjustments based on the U.S. Consumer Price Index beginning in 2027. Distributors must attach a specific report to their tax return to claim the credit, and any unused credit amount is refundable. The bill directly affects beverage distributors who originate container deposits and depends on the passage of companion bill SB 512 to take effect.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax credit reducing state revenue for beverage distributors via refundable credit per container sold.90% confidence ✓ EnvironmentSupports EnvironmentCreates tax credit for container deposit systems, directly promoting recycling and reducing single-use plastic waste per environmental policy indicators.95% confidence

Sub-Topics Business Taxes Recycling

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in committee · Michigan · House Jul 15, 2025

HB 4721: Transportation: motor fuel tax; incentives for the sale and production of biodiesel; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 679.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits (reducing tax burden) for biodiesel businesses, directly aligning with tax relief indicators under Budget & Taxes policy.90% confidence ✓ EnergySupports EnergyProvides tax credits for biodiesel production/sales, directly promoting renewable energy use in transportation infrastructure.95% confidence ✓ EnvironmentSupports EnvironmentTax credits for biodiesel production/sales directly promote cleaner fuel adoption, reducing emissions and supporting renewable energy transition per bill's intent.95% confidence ✓ TransportationSupports TransportationBill provides tax incentives for biodiesel production/sales (sustainable transportation), directly advancing alternative fuel adoption in Michigan's transportation sector per motor fuel tax provisions.95% confidence

Sub-Topics Business Taxes Electric Vehicles Transportation Funding

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in committee · Michigan · Senate Jun 12, 2025

SB 417: Corporate income tax: revenue distribution; earmark for the beverage container handling fund; provide for. Amends sec. 695 of 1967 PA 281 (MCL 206.695). TIE BAR WITH: SB 416'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects corporate tax revenue to housing and beverage container funds, increasing targeted budget allocations for public services.95% confidence ✓ HousingSupports HousingBill allocates $50M annually to Michigan housing fund starting 2026-27, directly funding housing programs per bill text.95% confidence

Sub-Topics Business Taxes Revenue

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