LANSING — State Rep. Mari Manoogian (D-Birmingham) introduced House Bill 4795 to prohibit corporations from deducting certain expenses incurred while outsourcing work. Under current federal tax law, corporations are allowed to deduct these expenses, providing incentives to businesses that outsource operations. This bill would eliminate those specific deductions at the state level, encouraging businesses to keep jobs in Michigan.
“Michiganders work hard to ensure their families’ wellbeing, and I will always fight for their ability to do so,” said Manoogian. “Big businesses need to pay their fair share in this state, just like everyone else. Our state should not incentivize or reward shipping valuable jobs out of our communities, no matter what misguided policy changes are made at the federal level.”
The legislation defines “specified outsourcing expenses” as expenses paid or incurred by the taxpayer and attributable to the elimination of any trade or business that was located in Michigan, as well as expenses paid or incurred that are attributable to the relocation of a business previously located in Michigan.