Corporate income tax: credits; ability to claim certain certificated credits against corporate income tax liability; provide for, and repeal Michigan business tax act. Amends secs. 605 & 680 of 1967 PA 281 (MCL 206.605 & 206.680); adds sec. 670 & repeals 2007 PA 36 (MCL 208.1101 - 208.1519). TIE BAR WITH: HB 5293'25

2025-2026 Regular Session Introduced by Sarah Lightner and 1 co-sponsor

Allows remaining MBT certificated credits to reduce Michigan corporate income tax (2026-2035), with 10-year installments and refunds if credit exceed liability, plus 95% job retent

bill electronically reproduced 11/13/2025

#corporateincometax:credits #michiganbusinesstax:repeal

Purpose

HB 5292 allows certain “certificated credits” that were issued under the now‑former Michigan Business Tax (MBT, 2007 PA 36) to be claimed against Michigan corporate income tax (CIT) liability, establishes how and when those credits may be claimed, and repeals the MBT statute for tax years beginning after December 31, 2025. The bill is tied to HB 5293 and only takes effect if that bill becomes law.

Key provisions

Adds section 670 to the Income Tax Act (1967 PA 281, MCL 206.605 & 206.680) to permit use of remaining certificated credits against CIT for tax years beginning on or after January 1, 2026 and before January 1, 2036.

Defines “certificated credit” to include:

Credits with a preapproval letter issued under section 437 of former 2007 PA 36 before Jan 1, 2012 (unused as of Jan 1, 2026), and
Credits or voucher certificates tied to agreements with the Michigan Economic Growth Authority under listed MBT sections (430–450) entered into before Jan 1, 2012 (unused as of Jan 1, 2026).

Claiming mechanics:

Remaining certificated credit must, where possible, be claimed in equal installments over 10 years beginning with the 2026 tax year.
If the credit exceeds a taxpayer’s CIT liability in a year, the excess is refundable.

Job maintenance requirement:

To be eligible to claim the credit in a tax year, a taxpayer must maintain at least 95% of the number of full‑time jobs it had in Michigan on September 30, 2025.
“Full‑time job” is defined as 35+ hours/week with income and Social Security taxes withheld by the taxpayer, an employee leasing company, or a professional employer organization.
Failure to maintain 95% disqualifies the taxpayer for that and subsequent tax years.

Amends transitional provisions (MCL 206.680) allowing certain taxpayers previously approved for certificated credits to elect MBT treatment for specified years (transitional election language preserved through Dec 31, 2025).

Repeals the Michigan Business Tax Act (2007 PA 36, MCL 208.1101–208.1519) effective for tax years beginning after Dec 31, 2025 (Enacting Section 1).

Conditional enactment: The act does not take effect unless HB 5293 is enacted (Enacting Section 2).

Who is affected

C corporations (as defined by IRC references) that hold unused certificated credits from MBT-era programs.

Department of Treasury (administration, verification of job counts, refunds).

Potentially the state budget (refundable credits create near‑term cash outflows).

Employers whose workforce levels determine eligibility.

Procedural/timeline notes

Introduced March 14, 2025; electronically reproduced Nov 13, 2025; referred to Committee on Finance.

Applies to tax years beginning Jan 1, 2026 through Dec 31, 2035 (credits claimable in that period, with intended 10‑year installment treatment starting 2026).

Conditional on enactment of HB 5293 (tie bar).

Practical impact

Provides a pathway to monetize legacy MBT certificated credits under the current CIT regime, subject to job‑retention conditions and phased claiming.

Could lead to state refunds when credit amounts exceed annual CIT liabilities, and requires Treasury oversight to verify job maintenance and administer refunds.

Bill

Summary — HB 5292 (House Introduced Bill, 2025)

Purpose

Key provisions

Who is affected

Procedural/timeline notes

Practical impact

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