Senate Considers Change to Corporate Income Tax

Liz Gullett

May 28, 2021

This week, the Senate Finance Committee heard testimony on a bill seeking to reduce the Corporate Income Tax (CIT) rate in Michigan. Introduced by Senator Jon Bumstead (R-Newaygo), the bill would lower the current rate of 6% to 5.5% from January 1, 2021 through December 31, 2021 and another reduction would take place on January 1, 2022 to 4.9% and that rate would remain in place moving forward. If passed, this bill would be retroactive to the beginning of the current calendar year.

According to the non-partisan Senate Fiscal Agency, this bill would have a negative impact on state revenue. It would reduce revenue for the 2020-2021 Fiscal Year by $23 million and the reduction to state revenue would jump to $240 million per year thereafter.

The bill remains before the Senate Finance Committee for further consideration.

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