The Michigan Legislature is currently doing work in the district until mid-April, but the lawmakers have been busy considering several bills impacting the small business community. After making changes to the Earned Sick Time Act and tipped wage on February 20, 2025, House Republicans, began movement on their Mission for Michigan that includes some key small business issues.

MI House Passes Income Tax Cut from 4.25% – 4.05%
On March 11, NFIB testified in support of House Bill 4170, legislation that lowers the income tax from 4.25% to 4.05%. The House passed the legislation with bipartisan support on March 18, 2025. Unfortunately, we do not expect the Senate to take up the bill.

Regulatory Reform
ICYMI: Michigan State Director Amanda Fisher recently wrote an op-ed in Crain’s Detroit on the need for regulatory reform in response to the Governor’s State of the State address. Fisher also interviewed with WILS Morning Show – listen here!

Additionally, House Republicans have begun hearings on government overreach, including the abuse of the administrative rules process, which allows departments to make policies with the force of law independent from the Legislature. NFIB testified on March 13, 2025, before the House Rules Committee on the negative impact of regulations on small businesses.

Road Funding
House Republicans passed a nine-bill package on March 19 which provided $3.1 billion for a long-term road funding plan without raising taxes. The plan moves all $2.2 billion generated by the Corporate Income Tax to road funding.

The Governor has stated she will not approve anything that so broadly eliminates corporate incentives, and the Senate Democrats have made it clear they do not want any budget cuts. The negotiations around road funding will intertwine with the budget. Potential tax increases that have been proposed have included an increase in heavy truck fees, a new tax on electric vehicles, and an increase in the corporate income tax.

2023-24 Bills Still in Question
House Democrats failed to transmit almost 100 bills that had been passed by the Senate during the last week of the 2024 Lame Duck session until Republicans took over leadership of the House in early January. At that time, the House held back 9 bills, including a bill that would require public employees to pay at least 20% of their healthcare premiums and wage garnishment bills making it harder for those who are owed money to receive restitution.

The House has indicated they will not transmit the bills since the Michigan Constitution does not contain a time limit when the bills must be presented. The case will likely be presented before the Michigan Supreme Court.