Michigan HB4603 imposes a corporate income tax surcharge on companies with high executive-to-employee pay ratios.

Michigan HB4603 amends the state's corporate income tax law by adding a surcharge for corporations with high executive-to-employee pay ratios. The surcharge applies to tax years beginning on and after October 1, 2025, and is based on the pay ratio disclosed in SEC filings. The surcharge rates range from 0% to 50% depending on the pay ratio, with higher ratios incurring higher surcharges. The surcharge is part of the corporate income tax and is administered under existing tax laws. Corporations not required to file SEC pay ratio disclosures are exempt from the surcharge.

Michigan HB4603 imposes a corporate income tax surcharge on companies with high executive-to-employee pay ratios.

Michigan HB4603 amends the state's corporate income tax law by adding a surcharge for corporations with high executive-to-employee pay ratios. The surcharge applies to tax years beginning on and after October 1, 2025, and is based on the pay ratio disclosed in SEC filings. The surcharge rates range from 0% to 50% depending on the pay ratio, with higher ratios incurring higher surcharges. The surcharge is part of the corporate income tax and is administered under existing tax laws. Corporations not required to file SEC pay ratio disclosures are exempt from the surcharge.