Individual income tax: revenue distributions; distribution and use of renew Michigan fund and lapse of interest and earnings from the revitalization and placemaking fund to general fund; modify and provide for. Amends secs. 51, 51g & 696 of 1967 PA 281 (MCL 206.51 et seq.). TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, HB 4183'25, HB 4184'25, HB 4185'25, HB 4186'25

The tax applicability changed from 'corporations' to 'every person other than a corporation,' significantly broadening who must pay the tax.

The tax rate mechanism changed from a fixed percentage to a dynamic formula that automatically lowers the rate if state revenue increases more than inflation, preventing revenue-driven tax hikes.

New provisions were added to automatically deposit specific percentages of tax collections into the state school aid fund and the agricultural preservation fund.

The bill was renumbered from House Bill 4187 to a Senate Substitute, indicating it has passed the House and is now in its final Senate version.

Removed a website validation error message and form submission instructions that were blocking the display of the bill text.

Added full text of the bill amending sections 623 and 695 of the Michigan Income Tax Act.

Changed the tax treatment of oil and gas production: previously exempt for all taxpayers, now only exempt for 'qualified taxpayers' (income from minerals remains taxable for others).

Added specific criteria and exceptions for adding back expenses paid to related parties for the use of intangible assets.

Clarified the definition of 'oil and gas' to specifically refer to resources subject to severance tax under 1929 PA 48.

Updated revenue distribution rules to allocate up to $1.2 billion to the general fund and specific amounts to housing and revitalization funds for fiscal years 2022-2023 through 2024-2025, and established new mandatory allocations to transportation and housing funds starting in fiscal year 2025-2026.

Removed House Bills 4186 and 4184 from the list of required companion bills, meaning HB 4187 can now take effect without those specific bills being passed.

Adjusted the effective dates and fiscal year periods for various revenue distribution mandates to align with updated legislative schedules.

Corrected text formatting errors in the revenue distribution subsections, such as misplaced words and inconsistent numbering.