Great Lakes Wire

The Michigan Legislature is actively addressing several bills with potential impacts on the small business community. A notable initiative was the modification of the Earned Sick Time Act on February 20, 2025, which marked the beginning of their Mission for Michigan initiatives.

A significant development is the passage of House Bill 4170, which lowers the state income tax from 4.25% to 4.05%. This proposal, supported by the National Federation of Independent Business (NFIB), received bipartisan backing in the House on March 18, 2025. However, a consideration in the Senate remains uncertain.

Regulatory reform is another critical issue being explored. Michigan State Director Amanda Fisher recently expressed the necessity for reform in an op-ed in Crain’s Detroit. Fisher also discussed this topic on a radio interview with WILS Morning Show. The House Rules Committee heard testimony from NFIB on March 13, 2025, regarding the burdensome effect of regulations on small businesses. These discussions center around the administrative rules process, which allows departments to independently establish policies with legal force.

In road funding, the House Republicans approved a nine-bill package on March 19 to allocate $3.1 billion for long-term infrastructure funding without taxation increases. The core of this plan redirects $2.2 billion from Corporate Income Tax revenue to road funding. However, challenges arise as the Governor opposes broadly removing corporate incentives, and Senate Democrats are reluctant to accept budget cuts. The negotiations are ongoing, with possible tax increases being contemplated, including adjustments to heavy truck fees, electric vehicle taxes, and corporate income tax.

Lastly, several bills passed by the Senate in late 2024 remain in limbo because House Democrats failed to transmit them before Republicans assumed leadership in January. Nine specific bills are currently withheld. Without a constitutional time constraint for presentation, resolving this issue might lead to Michigan Supreme Court involvement.