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Louisiana
Corporate Tax Rate - Effective January 1, 2025, the corporate tiered corporate income tax rate will be replaced with a flat rate of 5.5%. Deductions from gross income will be allowed for bonus depreciation for qualified property or qualified improvement property along with a bonus amortization deduction for research and experimental expenditures. To read the text of Act 5/HB2, click here.
Individual Tax Rate - In addition, Louisiana’s individual income tax rate will move to a flat tax rate of 3% for all filers.
Michigan
The Michigan Department of Treasury has issued a release discussing how to compute federal taxable income (FTI), and the treatment of FTI, a net operating loss (NOL) and a business loss (BL) for purposes of computing corporate income tax (CIT) liability under Chapter 11, Part 2 of the Michigan Income Tax Act (MITA). The release also discusses the reporting of these amounts on the Michigan CIT return (Form 4891). The guidance is limited to corporations reporting business income under Part 2 of the MITA and does not apply to insurance companies and financial institutions that are subject to different taxes under Chapters 12 and 13. You can read the details by clicking here.
Minnesota
Individual Income Tax - The Minnesota Department of Revenue has announced the adjusted 2025 individual income tax brackets, which will change by 2.886% compared to tax year 2024. This annual adjustment will prevent taxpayers from paying taxes at a higher rate solely because of inflationary changes to their income. You can view the 2025 brackets by clicking here.
Renter’s Credit - Starting this upcoming tax filing season, renters eligible for a property tax refund will now claim the new Renter’s Credit on their Minnesota Individual Income Tax return. To claim the Renter’s Credit, renters must file a state income tax return (Form M1). For most renters claiming a property tax refund, this means they will no longer file a separate Property Tax Refund return and will not receive a separate refund later in the year. The Renter’s Credit will be part of their income tax refund amount, be applied to the amount owed on their income tax return, or be applied to other debts referred to the Minnesota Department of Revenue.
This change does not affect homeowners. Homeowners will continue to use Form M1PR to file a Property Tax Refund return to receive the Homestead Credit Refund.
For more information about the Renter’s Credit, click here.
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