Michigan business tax: rate; rate increase and election to file under corporate income tax act; provide for, and allow for certain taxpayers. Amends secs. 201 & 500 of 2007 PA 36 (MCL 208.1201 & 208.1500). TIE BAR WITH: HB 4183'25, HB 4182'25, HB 4181'25, HB 4180'25, HB 4185'25, HB 4187'25, HB 4184'25

The business income tax rate is increased from 4.95% to 30.0% for tax years beginning on or after January 1, 2025.

New adjustments are added to the tax base to include interest and dividends derived from obligations or securities of states other than Michigan.

New definitions are established for 'qualified affordable housing project' and 'rent restricted unit' to determine eligibility for specific tax deductions.

New deductions are created for gains from selling residential rental units to qualified affordable housing projects and for income from rent-restricted units owned by such projects.

Taxpayers with specific certificated credits are now eligible to elect to pay the new business income tax instead of the standard income tax for certain years.

The definition of the business income tax base is expanded to include expenses paid to related parties for intangible assets unless specific exceptions apply.