MI HB5376

Changes the definition of "federal taxable income" for tax years 2023 and after to mean taxable income as defined in section 63 of the Internal Revenue Code, eliminating prior carve-outs for sections 168(k) and 199.

Adds a new deduction for business assets qualifying for 100% bonus depreciation, allowing taxpayers to deduct expenditures for qualified property and qualified improvement property as an expense in the year placed in service, with an alternative option to depreciate under section 168.

Allows taxpayers to elect among three depreciation methods: bonus depreciation, section 168 depreciation, or section 179 expensing, with total deductions not to exceed 100% of property cost and elections to be made before the annual tax return due date.

Updates the Internal Revenue Code reference date from January 1, 2018 to January 1, 2023 for purposes of determining applicable tax rules and definitions.

Makes all changes retroactively applicable to all business activity occurring on and after January 1, 2023.