One of the tax policies in the "one big beautiful bill" allows companies to subtract their research costs from their income, potentially benefiting Michigan businesses while raising concerns about state revenue.
- The new tax law could cost Michigan $677 million in lost revenue this year, according to a House fiscal agency report.
- Agriculture, manufacturing, and hospitality are among the sectors expected to benefit most from the tax policies.
- Experts are divided on whether the tax savings will lead to job creation due to Michigan's declining and aging population.
Michigan businesses may see tax benefits that could help them compete in today's economy.
WATCH: Michigan's new tax law creates benefits for businesses but raises budget concerns
The new tax policy is designed to support companies that employ new high-skilled college graduates and help Michigan businesses remain competitive.
"Things that are new, that employ new high skilled graduates out of college that allows companies in Michigan to continue to compete in today's economy and into the future," Tyler Theile with the Anderson Economic Group said.
Theile says tax cuts could give Michigan businesses a boost. But there's a trade-off: this and other policies in the tax bill, now law, could cost the state $677 million in lost revenue this year according to a House fiscal agency report.
When asked what business sectors will benefit most from these tax policies, Theile identified several key industries.
"Agriculture, manufacturing, hospitality," Theile said.
The goal of the legislation is to make Michigan more competitive in the job market.
Republican Speaker of the House Matt Hall suggests the tax savings could lead to job creation and investments.
"If you get this increased research and development activity and engineering activity and you get this increase in manufacturing that's expected under the one big beautiful bill, you're going to get increased growth and you're going to get more jobs throughout Michigan and across the country," Hall said.
However, because of Michigan's declining and aging population, Theile cautions that economic growth isn't guaranteed.
"It's hard to tell if lowering the business tax burden further will cause growth in Michigan," Theile said.
The revenue loss raises questions about how the state might make up the difference. Over the last few months, Senate Democrats have voiced concerns about the impact the bill could have on communities.
"What Congress is doing is bad for Michigan, it's bad for our people, it's bad for our state budget, it's bad for the pocket books of our residents," a Senate Democrat said.
With $677 million of revenue lost, Theile suggests the state will need to find alternative funding sources.
"We'll have to make up for it somewhere," Theile said.
I will keep you up to date to let you know how this will impact you.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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