Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to pass a bill that amends the Michigan Business Tax (MBT) Act to provide for its eventual repeal, and to authorize certain taxpayers that wish to claim select certified credits authorized under the law to continue claiming those credits if they file returns under the Michigan Business Tax Act.

Highlights:

• Defines "certified credit" as including, but not limited to, any of the following unclaimed credits for which an agreements was entered into before January 1, 2012 (Sec. 107):
• A tax voucher certificate that has been issued to a taxpayer;
• A credit for which a pre-approval letter has been issued to a qualified taxpayer;
• A credit for which a taxpayer has entered into an agreement with the Michigan Economic Growth Authority;
• A credit for which a taxpayer or eligible production company has entered into an agreement with the Michigan Film Office with the approval of the State Treasurer;
• A credit for which a qualified taxpayer has received an approval for a qualified rehabilitation plan;
• A credit for which a qualified taxpayer has an agreement executed between a taxpayer and the Michigan Strategic Fund;
• A credit applicable to this act that is granted under the Natural Resource and Environmental Protection Act; and
• A credit allowed to a taxpayer for meeting the capital expenditure requirements under the tax code.

• Defines "taxpayer" as a person or a unitary business group subject to taxation, payment of interest, or a penalty under this act through December 31, 2011 (Sec. 107).

• Rescinds the Michigan Business Tax (MBT) Act for most taxpayers, by amending the definition of "taxpayer" to mean one of the following, beginning January 1, 2012 (Sec. 107):
• A person or unitary business group that has a certified credit and wishes to claim the credit; or
• A person or unitary business group that has a certified credit and elects to file under the Michigan Business Tax (MBT) Act rather than the new Income Tax Act.

• Requires that taxpayers who elect to claim certified credits pay a tax based on the greater amount of their Michigan Business Tax (MBT) liability, and if the tax calculation results in a negative amount, that amount must be refunded (Sec. 500).

• Specifies that the Michigan Business Tax (MBT) Act shall be repealed once the Secretary of State receives a written notice from the Department of Treasury confirming that all certified credits have been claimed (Sec. 510).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the Michigan Business Tax (MBT) Act to provide for its eventual repeal, and to authorize certain taxpayers that wish to claim select certified credits authorized under the law to continue claiming those credits if they file returns under the Michigan Business Tax Act.

Highlights:

• Defines "certified credit" as including, but not limited to, any of the following unclaimed credits for which an agreements was entered into before January 1, 2012 (Sec. 107):
• A tax voucher certificate that has been issued to a taxpayer;
• A credit for which a pre-approval letter has been issued to a qualified taxpayer;
• A credit for which a taxpayer has entered into an agreement with the Michigan Economic Growth Authority;
• A credit for which a taxpayer or eligible production company has entered into an agreement with the Michigan Film Office with the approval of the State Treasurer;
• A credit for which a qualified taxpayer has received an approval for a qualified rehabilitation plan;
• A credit for which a qualified taxpayer has an agreement executed between a taxpayer and the Michigan Strategic Fund;
• A credit applicable to this act that is granted under the Natural Resource and Environmental Protection Act; and
• A credit allowed to a taxpayer for meeting the capital expenditure requirements under the tax code.

• Defines "taxpayer" as a person or a unitary business group subject to taxation, payment of interest, or a penalty under this act through December 31, 2011 (Sec. 107).

• Rescinds the Michigan Business Tax (MBT) Act for most taxpayers, by amending the definition of "taxpayer" to mean one of the following, beginning January 1, 2012 (Sec. 107):
• A person or unitary business group that has a certified credit and wishes to claim the credit; or
• A person or unitary business group that has a certified credit and elects to file under the Michigan Business Tax (MBT) Act rather than the new Income Tax Act.

• Requires that taxpayers who elect to claim certified credits pay a tax based on the greater amount of their Michigan Business Tax (MBT) liability, and if the tax calculation results in a negative amount, that amount must be refunded (Sec. 500).

• Specifies that the Michigan Business Tax (MBT) Act shall be repealed once the Secretary of State receives a written notice from the Department of Treasury confirming that all certified credits have been claimed (Sec. 510).

Full Bill Text