Corporate income tax: deductions; federal deduction for certain outsourcing expenses; add back. Amends sec. 623 of 1967 PA 281 (MCL 206.623).
Key claim: HB5925 would require Michigan corporate taxpayers to add back federal deductions for certain outsourcing expenses when computing corporate income tax under MCL 206.623.
Abstract
(HB5925 · 103rd Legislature) Corporate income tax: deductions; federal deduction for certain outsourcing expenses; add back. Amends sec. 623 of 1967 PA 281 (MCL 206.623). Sponsor: Rep. Denise Mentzer (D) + 10 co-sponsors In committee: H Economic Competitiveness Latest action (2026-05-12): Bill Electronically Reproduced 04/30/2026
Why this matters
The bill uses Michigan’s corporate income tax to discourage outsourcing by decoupling from federal deductions for certain outsourcing expenses, effectively raising taxable income for firms that shift work out of state or country. For employers, it would increase Michigan tax liability tied to outsourcing costs; for taxpayers, it broadens the state’s corporate tax base without changing the headline rate.