MI SB0392

Changes corporate income tax rate from a flat 6.0% to a tiered structure: 6.0% through December 31, 2021, and 3.9% on and after January 1, 2022.

Maintains existing adjustments to the corporate income tax base including additions for state bond interest, net income taxes, and net operating loss carrybacks.

Allows deductions for dividends and royalties from non-U.S. persons and foreign entities under specified conditions from the Internal Revenue Code.

Requires add-backs for related-party royalties, interest, and other expenses paid for intangible assets unless the transaction meets four exemption criteria: pass-through status, prevention of double taxation, state treasurer approval, or involvement of a foreign nation with a U.S. tax treaty.

Permits business loss carryforwards for up to 10 years following the loss year to offset future corporate income tax bases.