Good News! Legislation that would save Michigan businesses from a harmful and costly consequence of federal tax reform is on its way to the Governor.
Senate Bill 1097 decouples from federal limitations how much interest expenses can be deducted from corporate income. The legislation reverses a $115 million tax increase on Michigan businesses due to federal tax reform. The Michigan Chamber initiated the legislation and led the fight to fix this inadvertent tax increase.
Due to limits in the amount of interest expenses that can be deducted from federal income, Michigan businesses saw a broadening in their taxable base at the federal level which triggered a tax increase at the state level. SB 1097 returns the state tax liability of Michigan businesses to what it was prior to the federal changes.
For more information, contact Dan Papineau at email@example.com.