It appears a tentative agreement on the state’s next business tax was reached late Tuesday night. The deal is made up of a modified gross receipts tax and a business income tax.

The revenue neutral tax incorporates the Senate Republicans’ BEST plan and the House Democrats’ New Michigan Business Tax. The net worth component is not part of the agreement. The deal is being presented to legislative leadership this morning.

Two-thirds of the tax is made up of a gross receipts tax at a rate of .75 percent. A deduction would be made for tangible property purchases. The other one-third would be made up of a business income tax. An alternative business tax would be made available for small businesses at a rate of 1.85 percent.

If approved, corporations would see significant local property tax relief in addition to a 35 percent personal property tax (PPT) credit. The PPT credit for commercial businesses would be 23 percent.

House Democrats sought more PPT relief for the state’s large manufacturers, but were able to write into the deal the credits for compensation, investment and R&D.