House Bill 4113 Summary

• Amends the corporate income tax provisions of Michigan's Income Tax Act of 1967 to add a new requirement for taxpayers to add back specified outsourcing expenses deducted at the federal level.

• Defines "specified outsourcing expenses" as eligible business expenses paid for eliminating or relocating trade or business operations that were previously located in Michigan and subsequently reestablished outside the state.

• Requires taxpayers to add back these outsourcing expenses to their corporate income tax base, effectively preventing the federal deduction from reducing Michigan state taxable income.

• Applies to expenses including permit and license fees, lease brokerage fees, equipment installation costs, and other similar trade or business expenses deductible under federal tax law.