Michigan House Bill HB6217

Michigan 2023-2024 Regular Session

• Introduced: 12/3/24
• Refer: 12/3/24

Caption

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).

Impact

The increased revenue is earmarked with significant allocations including an extensive provision for the Michigan taxpayer rebate fund, aimed at offsetting tax burdens for residents. For the fiscal years leading up to 2025, the bill specifies that up to $1.2 billion of this increased tax revenue will bolster the general fund, with further earmarks for housing development, revitalization initiatives, and strategic outreach programs designed to attract business investment in Michigan.

Summary

House Bill 6217 proposes amendments to the Income Tax Act of 1967, specifically altering sections 623 and 695 regarding corporate income tax rates and the allocation of tax revenues. The key change involves increasing the corporate income tax rate from 6.0% to 8.5%, effective January 1, 2025. This adjustment is designed to increase state revenues, which are intended to support various state-funded initiatives, particularly education through the school aid fund.

Contention

Notably, some stakeholders are likely to view the corporate tax increase as burdensome for businesses operating in Michigan, expressing concerns about its potential impact on the state's economic competitiveness. Conversely, proponents argue that the revenue generated is necessary for funding essential services such as education and infrastructure improvements. The underlying debate reflects broader themes of economic strategy, tax equity, and government responsibility in community investment.