Corporate income tax: deductions; federal deduction for certain outsourcing expenses; add back. Amends sec. 623 of 1967 PA 281 (MCL 206.623).

HB 5925 amends Michigan's corporate income tax law to require companies to add back certain expenses related to outsourcing and relocating business operations out of the state. Specifically, the bill mandates that businesses must include specified outsourcing expenses in their taxable income if those costs were incurred to eliminate a trade or business located in Michigan or to relocate a business that was previously in the state to a new location outside of it. The legislation defines these eligible expenses as costs associated with ending or moving a business, such as permit fees, lease brokerage fees, and equipment installation costs. This change directly affects corporations with business activity in Michigan that have undertaken outsourcing or relocation activities, requiring them to pay additional state taxes on these specific expenditures.