Crain’s Detroit Business
Sept. 23, 2025
David Eggert
A push to avert a budget hole by separating Michigan’s corporate income tax from federal tax changes is drawing criticism from businesses that say it would amount to a tax increase.
Six business organizations sent a memo to legislators last week opposing decoupling and stating that the federal tax changes harmonize well with Michigan’s new research-and-development tax credit.
“We ask policymakers to recognize that decoupling from federal tax cuts will result in tax increases for Michigan businesses, including small businesses and employers,” Business Leaders for Michigan, the Detroit Regional Chamber, the Grand Rapids Chamber, the Michigan Chamber of Commerce, the Michigan Manufacturers Association and the Small Business Association of Michigan wrote. “Michigan must remain competitive with other states, especially when federal tax policy is established to make all states more competitive against foreign competition.”
Whitmer’s office and the budget office declined to comment Monday. On Tuesday, the governor’s office said it did not originate or propose decoupling but did not rule it out as an option to balance the budget.