Businesses would exclude eligible broadband grants if companion bill becomes law

Covered businesses would subtract eligible broadband grant money when calculating their Michigan taxable business income. This covers businesses paying Michigan corporate income tax or flow-through entity tax, a business-level tax for businesses whose income passes to their owners. The grant must support providing, improving, or expanding broadband in Michigan and come through one of the listed government programs. Businesses would subtract only grant money included in their federal taxable income. The bill would take effect only if Senate Bill 209 of the 103rd Legislature becomes law. The deduction would apply to tax years beginning on or after January 1, 2026.

Covered businesses would add back expenses tied to eligible broadband grants when calculating their Michigan taxable business income. This covers businesses paying Michigan corporate income tax or flow-through entity tax that receive grants from listed government programs for broadband projects in Michigan. The rule would apply only to grant-related expenses deducted when calculating federal taxable income. It includes depreciation, the deduction for an asset’s cost over time. The bill would take effect only if Senate Bill 209 of the 103rd Legislature becomes law. The expense rule would apply to tax years beginning on or after January 1, 2026.