Advocacy News – March 2, 2021
Last week, legislation the Michigan Chamber supports was introduced to allow for immediate expensing of capital assets. HB 4324 will “re-couple” Michigan’s tax code to the federal government’s bonus depreciation which will allow a business to take the entire expense of a capital investment in the first year of acquisition.
While federal bonus depreciation will begin to phase out in years to come, this move will still provide a tax benefit to Michigan job providers and simplify the tax filing process.
Meetings with the Michigan Department of Treasury are underway to see if there is a way to implement this policy by either paying for it fully upfront with excess state revenues or phasing it in overtime.
For more information on this legislation, please contact Dan Papineau at dpapineau@michamber.com.