MI HB4961

Updates Michigan's Internal Revenue Code reference date to January 1, 2025, and requires state taxable income calculations to treat certain federal tax provisions (sections 163(j), 168(k), 168(n), 174, 174A, and 179) as if they were in effect on December 31, 2024, effectively decoupling from recent federal tax law changes

Redirects corporate income tax revenue to the neighborhood road fund in escalating amounts: $688 million (FY 2025-26), $776 million (FY 2026-27), $864 million (FY 2027-28), $952 million (FY 2028-29), and $1.04 billion annually beginning FY 2029-30

Creates a temporary deduction for qualified tips and overtime compensation for tax years 2026 through 2028, aligning with federal deductions under sections 224 and 225 of the Internal Revenue Code

Maintains existing revenue deposits of up to $1.2 billion to the general fund and up to $50 million to the Michigan housing and community development fund across all fiscal years, while eliminating deposits to the strategic outreach and attraction reserve fund and revitalization and placemaking fund after FY 2024-25

Repeals Section 51d of the Income Tax Act effective September 30, 2025, and makes the amendatory act contingent on enactment of House Bills 4183, 4951, and 4968