Restructuring Income Tax Provisions and Revenue Distributions

Description

This bill updates the treatment of certain federal Internal Revenue Code provisions in Michigan's income tax law and alters how related revenues are distributed, while repealing an existing section. Its impact depends on the details, but it reshuffles revenue flows rather than delivering broad-based tax cuts. CPAC favors reforms that clearly lower and simplify taxes and was skeptical of this redistribution-focused redesign, so CPAC opposed this bill. The Senate passed this bill on 2025-10-03 by a vote of 22-14. The bill later became law.