The State Senate last week passed Chamber-backed legislation that would allow Michigan businesses to ignore new federal limitations on the amount of interest expenses that can be deducted from income.
Part of the federal tax changes that passed late last year limited the amount of interest expenses that can be deducted from corporate income. This broadened the tax base allowing more income to be taxable, triggering a $100 million tax increase on Michigan businesses. Senate Bill 1097 “decouples” from these new limitations and reverses an automatic tax increase that happened as result of federal tax reform.
The House Tax Policy Committee plans to take up the bill this week.
For more information, please contact Dan Papineau at firstname.lastname@example.org.