The State Senate has passed its version of the Tax Bill. Just like the House it freezes the income tax rate at 4.35%, it includes replacing the Michigan Business Tax with a 6 percent corporate income tax, it removes the exemptions on pensions using the under 67 cap.
The Senate did make some changes to the Earned Income Tax Credit by adding just over $100 million back into the EITC program.
On the Economic Development portion of the bill the some Renaissance tax credits will remain as well as giving developers the ability to sell to the state brownfield and historic preservation tax credits
The Governor would like the tax and budget plans to be done by May 31st.
The House and Senate versions will now go to Conference Committee to reach an agreed upon deal.