Michigan replaces MBT with new corporate income tax

On May 25, 2011, Michigan Governor Rick Snyder signed a three-bill tax package that replaces the Michigan Business Tax (MBT) with a 6 percent corporate income tax, effective January 1, 2012, and makes other changes. The MBT will be repealed except for taxpayers electing to claim "certificated" credits under the MBT until those credits are exhausted, with certain exceptions. In addition, the Governor approved a measure that bars taxpayers from apportioning income under the Multistate Tax Compact, effective January 1, 2011. [H.B. 4361, H.B. 4362, H.B. 4479, enacted 5/25/2011]

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