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Corporate Income Tax Revenue Allocation Act

This bill modifies the distribution of corporate income tax revenue in Michigan for different state fiscal years, with a focus on allocating funds to various state funds and infrastructure projects. From the 2022-2023 through 2024-2025 fiscal years, the bill directs corporate income tax revenue first to the general fund (up to $1.2 billion), then to the Michigan housing and community development fund (up to $50 million), next to the revitalization and placemaking fund (up to $50 million), and then to the strategic outreach and attraction reserve fund (up to $500 million), with any remaining balance going to the general fund. Beginning in the 2025-2026 fiscal year through 2029-2030, the bill mandates $50 million be deposited to the housing development fund, with up to $2.2 billion then distributed primarily to road-related agencies: 90% to local road agencies (split among neighborhood roads, county road commissions, and cities and villages) and 10% to the state trunk line fund. A similar distribution pattern continues from the 2030-2031 fiscal year onward, with slight percentage adjustments to the local road agency allocations. The bill also makes a minor grammatical change in the existing tax code, replacing "which" with "that" in one section. The bill is contingent on the passage of several related House Bills.1