February 25, 2021 – Advocacy News
HB 4288 was introduced this week and is expected to save businesses organized as s-corporations, partnerships, limited partnerships, limited liability partnerships and limited liability companies almost $200 million in taxes per year.
Business types listed above, commonly referred to as “passthrough” businesses, will be able to fully deduct their state and local taxes (SALT) from their federal income under changes made in HB 4288 thereby, significantly reducing their federal tax liability. Because the legislation shifts the tax away from an individual and to the business entity, taxpayers can get out from underneath the federal $10,000 cap on SALT deductions.
The Michigan Chamber is leading the charge on this policy change that will be a significant benefit to Michigan’s smallest businesses. Having no impact on state revenues, this legislation is a win-win for taxpayers and state government.
The legislation will be before the House Tax Policy Committee for a hearing next week. We hope for quick action on this priority issue.
For more information on this legislation, please contact Dan Papineau at dpapineau@michamber.com