The business climate in Michigan is changing.

Tax Foundation reports that Michigan has the 12th best "business tax climate" heading to 2013.  That's up from 18th in 2012.

The improvement in ranking is in large part due to major changes to corporate taxes in Michigan.  Michigan's corporate tax ranking went from 49th in 2012 to 7th for 2013.

Detroitnews.com has more:

Michigan took a big jump in making its tax system more inviting to business,  becoming the 12th-friendliest tax system in the nation after last year  eliminating a complicated business tax, a tax research group said Tuesday.

The Great Lakes State experienced the second-highest increase in rank for its  business tax climate nationwide, climbing to No. 12 from No. 18 in a year,  according to Washington, D.C.-based Tax Foundation. The improvement gives  Michigan the second best rating in the Midwest, trailing only neighboring, No.  11 Indiana.

Economists attributed the improvement to replacing the Michigan Business Tax  with a flat-rate 6 percent corporate income tax.

The change in rankings are not welcome by all as they come following tax cuts opposed by many.

View the full report from Tax Foundation here.