Bill Text: MI HB4191 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Corporate income tax: other; election to file a return under the Michigan business tax under certain circumstances; provide for. Amends sec. 680 of 1967 PA 281 (MCL 206.680). TIE BAR WITH: HB 4189'19, HB 4190'19
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2019-10-10 - Assigned Pa 92'19 With Immediate Effect [HB4191 Detail]
Download: Michigan-2019-HB4191-Engrossed.html
HB-4191, As Passed House, May 22, 2019
SUBSTITUTE FOR
HOUSE BILL NO. 4191
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 680 (MCL 206.680), as amended by 2012 PA 70.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 680. (1) Notwithstanding any other provision of this
part, except as otherwise provided in subsection (2) for a
certificated credit under section 435 or 437 of the Michigan
business tax act, 2007 PA 36, MCL 208.1435 and 208.1437, or in
subsection (5) for a certificated credit under section 431 of the
Michigan business tax act, 2007 PA 36, MCL 208.1431, a taxpayer
that has been approved to receive, has received, or has been
assigned a certificated credit that has not been fully claimed or
paid prior to January 1, 2012 may, for the taxpayer's first tax
year ending after December 31, 2011 only, elect to file a return
and pay the tax imposed by the Michigan business tax act, 2007 PA
36, MCL 208.1101 to 208.1601, in lieu of the tax imposed by this
part. An election under this subsection shall continue for the
period prescribed in section 500(1) of the Michigan business tax
act, 2007 PA 36, MCL 208.1500.
(2) A taxpayer with a certificated credit under section 435 or
437 of the Michigan business tax act, 2007 PA 36, MCL 208.1435 and
208.1437, which certificated credit may be claimed in a tax year
ending after December 31, 2011 may elect to pay the tax imposed by
the Michigan business tax act, 2007 PA 36, MCL 208.1101 to
208.1601, in the tax year in which that certificated credit or any
unused carryforward may be claimed in lieu of the tax imposed by
this part.
(3) A taxpayer that is a member of a unitary business group
and that has a certificated credit under sections 431 and 434(2)
and (5) of the Michigan business tax act, 2007 PA 36, MCL 208.1431
and 208.1434, is not required to file a combined return as a
unitary business group and may elect to file a separate return and
pay the tax, if any, under the Michigan business tax act, 2007 PA
36, MCL 208.1101 to 208.1601.
(4) A taxpayer that elects to pay the tax imposed by the
Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601,
under this section is not required to file an annual return under
this part.
(5) A taxpayer that acquires, pursuant to the modification of
an existing written agreement approved by a resolution of the
Michigan strategic fund board on November 27, 2018 and the
subsequent transfer of that written agreement, a certificated
credit authorized by the Michigan economic growth authority in 2004
under section 431 of the Michigan business tax act, 2007 PA 36, MCL
208.1431, may, for the first tax year ending after October 1, 2018
only, elect to file the return and pay the tax imposed by the
Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, in
lieu of the tax imposed by this part as long as the Michigan
economic growth authority or its successor determines that the
modification and subsequent transfer of that credit reduces the
total amount of the credit. However, if the first tax year ending
after October 1, 2018 ends before the effective date of the
amendatory act that added this subsection and the taxpayer has
already filed a return for that tax year under this part, then the
taxpayer may, if within the statute of limitations period
prescribed under section 27a of 1941 PA 122, MCL 205.27a, elect
under this subsection to file the return and pay the tax imposed by
the Michigan business tax act, 2007 PA 36, MCL 208.1101 to
208.1601, for that tax year by filing the necessary amended return
under this part and filing an original return as provided under
section 505 of the Michigan business tax act, 2007 PA 36, MCL
208.1505. An election under this subsection shall continue for the
period prescribed in section 500 of the Michigan business tax act,
2007 PA 36, MCL 208.1500.
(6) (5)
As used in this section,
"certificated credit" means
that term as defined in section 107 of the Michigan business tax
act, 2007 PA 36, MCL 208.1107.
Enacting section 1. This amendatory act is retroactive and
effective for tax years beginning after December 31, 2017.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 100th Legislature are
enacted into law:
(a) House Bill No. 4189.
(b) House Bill No. 4190.
