In a move aimed at protecting state revenue – reportedly up to $540 million annually – Michigan has “decoupled” from certain provisions of the federal tax code. Typically, state income taxes start with federal taxable income, then make adjustments to reflect state-specific rules. When federal tax law changes, states can choose whether to adopt those changes or decouple from them.
Sean H. Cook, a partner with Warner and chair of the firm’s Tax Practice Group, joined the Michigan Chamber of Commerce’s MI Business Matters podcast for the segment, “Decoupling De-coded: What Michigan Just Did to Taxes.” He noted Michigan has decoupled from federal tax code provisions on several occasions in the past.
“All businesses need to adjust,” Cook said. “And the changes are immediate, impacting 2025 taxes in a multitude of ways.
“This will make taxes and compliance a whole lot more difficult. We encourage all businesses to engage their tax attorney or CPA early for year-end planning. Warner tax attorneys are closely analyzing the new legislation to help clients proactively prepare for the upcoming changes.”
Hosted by Jim Holcolm, president and CEO of the Chamber, the full podcast can be heard here.
