Background
On July 4, 2025, Public Law 119-21, also known as the One Big Beautiful Bill Act (OB3), was signed, bringing numerous changes to the Internal Revenue Code (IRC). On October 7, 2025, Governor Whitmer signed Public Act 24 of 2025 (2025 PA 24) which included provisions that brought Michigan tax law into alignment with certain newly enacted deductions within the IRC. Treasury is releasing this notice to advise the public on statutory amendments enacted through 2025 PA 24 as they relate to new state level deductions for qualifying overtime compensation and qualified tips.