2025 House Bill 4187

Corporate income tax: revenue distribution; distribution of corporate income tax revenue; modify.

A bill to amend 1967 PA 281, entitled “Income tax act of 1967,” by amending sections 623 and 695 (MCL 206.623 and 206.695), section 623 as amended by 2021 PA 135 and section 695 as amended by 2023 PA 4.

Mackinac Center Analysis

House Bills 4180-87 and House Bill 4230 replace the sales tax levied on fuel purchase with a 20 cent per-gallon tax on fuel. The bills eliminate the earmark from corporate income taxes to selective business subsidy programs and allocates the revenue from the tax to transportation funding. Overall, the package is a 73% increase in state spending on roads, allocating $3.2 billion more to this effort.

Introduced in the House

March 6, 2025

Introduced by Rep. Pat Outman (R-91) and 28 co-sponsors

Co-sponsored by Reps. Mike Hoadley (R-99), Matt Bierlein (R-97), Jamie Thompson (R-28), Brian BeGole (R-71), Mark Tisdel (R-55), Ken Borton (R-105), Tim Kelly (R-93), Gina Johnsen (R-78), Cameron Cavitt (R-106), Jason Woolford (R-50), Thomas Kuhn (R-57), David Prestin (R-108), Alicia St. Germaine (R-62), Steve Frisbie (R-44), Jay DeBoyer (R-63), Greg Markkanen (R-110), Luke Meerman (R-89), John Roth (R-104), Nancy Jenkins-Arno (R-34), Ann Bollin (R-49), Gregory Alexander (R-98), Donni Steele (R-54), William Bruck (R-30), Sarah Lightner (R-45), Angela Rigas (R-79), Tom Kunse (R-100), David Martin (R-68) and Curtis VanderWall (R-102)

Referred to the Committee on Transportation and Infrastructure

March 18, 2025

Reported with substitute H-1

Substitute H-1 concurred in by voice vote

Amendment offered by Rep. Kristian Grant (D-82)

1. Amend page 5, line 8, after “(b)” by striking out the balance of the line through “after” on line 9 and inserting “After”.

2. Amend page 5, line 27, after “part,” by striking out “up to $2,200,000,000.00” and inserting “$50,000,000.00”.

3. Amend page 5, line 28, after “deposited” by inserting “to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a,”.

4. Amend page 6, line 3, after “deposited” by inserting “and up to $2,200,000,000.00 of the revenue collected under this part must be deposited”.

5. Amend page 6, line 22, after “part,” by inserting “$50,000,000.00 of the revenue collected under this

part must be deposited to the Michigan housing and community development fund created in

section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and”.

The amendment failed by voice vote

Amendment offered by Rep. Joey Andrews (D-38)

1. Amend page 6, following line 19, by inserting:

“(c) After the distributions under subdivisions (a) and (b), up to $5,000,000.00, if available, to the

department of transportation for distribution to entities that receive a distribution under subdivision (a)(ii) or (iii) and demonstrate that the entities have entered into a contract pursuant to section 18d of 1951 PA 51, MCL 247.668d, or otherwise collaborated on a road funding project, that resulted in reduced costs for environmental or permitting reviews and studies attributable to that

contract or project.”.

2. Amend page 7, following line 10, by inserting:

“(c) After the distributions under subdivisions (a) and (b), up to $5,000,000.00, if available, to the

department of transportation for distribution to entities that receive a distribution under subdivision (a)(ii) or (iii) and demonstrate that the entities have entered into a contract pursuant to section 18d of 1951 PA 51, MCL 247.668d, or otherwise collaborated on a road funding project, that resulted in reduced costs for environmental or permitting reviews and studies attributable to that

contract or project.”.

The amendment failed by voice vote

Amendment offered by Rep. Joey Andrews (D-38)

1. Amend page 6, line 18, after “(b)” by striking out “Ten” and inserting “Five”.

2. Amend page 6, following line 19, by inserting:

“(c) Five percent to the comprehensive transportation fund established in section 10b of 1951 PA 51, MCL 247.660b.”.

3. Amend page 7, line 9, after “(b)” by striking out “Ten” and inserting “Five”.

4. Amend page 7, following line 10, by inserting:

“(c) Five percent to the comprehensive transportation fund established in section 10b of 1951 PA 51, MCL 247.660b.”.

The amendment failed by voice vote

March 19, 2025

Amendment offered by Rep. Pat Outman (R-91)

1. Amend page 5, line 8, after “(b)” by striking out the balance of the line through “after” on line 9 and inserting “After”.

2. Amend page 5, line 27, after “part,” by striking out “up to $2,200,000,000.00” and inserting “$50,000,000.00”.

3. Amend page 5, line 28, after “deposited” by inserting “to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and expended as provided under section 58c(1)(a), (b), (c), (d), (e), and (f) of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458c,”.

4. Amend page 6, line 3, after “deposited” by inserting “and up to $2,200,000,000.00 of the revenue collected under this part must be deposited”.

5. Amend page 6, line 22, after “part,” by inserting “$50,000,000.00 of the revenue collected under this

part must be deposited to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and expended as provided under section 58c(1)(a), (b), (c), (d), (e), and (f) of the state housing development

authority act of 1966, 1966 PA 346, MCL 125.1458c, and”.

The amendment passed by voice vote

Passed in the House 63 to 45 (details)

Motion to give immediate effect by Rep. Bryan Posthumus (R-90)

The motion prevailed by voice vote

Received in the Senate

April 15, 2025

Referred to the Committee on Appropriations