On January 17, Michigan Gov. Gretchen Whitmer signed H.B. 5022 (Public Act 216 of 2024), a taxpayer-friendly bill that makes welcome changes to the state’s flow-through entity (FTE) tax rules. The new rules are effective retroactively to tax years beginning on or after January 1, 2024.

Michigan’s new R&D Tax Credit, effective January 1, 2025, offers incentives for businesses conducting R&D in the state. Large businesses can claim up to $2M, while small businesses can receive up to $250K. An additional credit is available for university collaborations.

Starting in 2024, the Corporate Transparency Act (“CTA”) mandates certain entities (primarily small and medium-size businesses) created in or registered to do business in the United States report information about their beneficial owners—the individuals who ultimately own or control a company—to the Financial Crimes Enforcement Network (“FinCEN”).

A long-debated piece of Michigan tax law covering the delivery and installation of goods could finally get a rewrite under an agreement between Democratic state leaders and Republican members of the Legislature.

Tax season is fast approaching, and, at EHTC, we know that it can bring added stress to our clients. The best way to mitigate some of that strain is to stay organized and stay on top of all the important details—and resist the urge to procrastinate until late February or March.

What does a work-from-home workforce mean for taxes? There’s certainly pros and cons to remote work, but what should business owners and employers be aware of during this shift?