Bill Text: MI HB4967 | 2011-2012 | 96th Legislature | Chaptered
Bill Title: Income tax; credit; provision to provide for recapture under certain circumstances of certain credits earned under previous business tax acts; create. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 673.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-10-18 - Assigned Pa 181'11 With Immediate Effect [HB4967 Detail]
Download: Michigan-2011-HB4967-Chaptered.html
Act No. 181
Public Acts of 2011
Approved by the Governor
October 11, 2011
Filed with the Secretary of State
October 13, 2011
EFFECTIVE DATE: January 1, 2012
STATE OF MICHIGAN
96TH LEGISLATURE
REGULAR SESSION OF 2011
Introduced by Rep. Farrington
ENROLLED HOUSE BILL No. 4967
AN ACT to amend 1967 PA 281, entitled “An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts,” (MCL 206.1 to 206.713) by adding section 673.
The People of the State of Michigan enact:
Sec. 673. (1) A taxpayer that has claimed a credit under former 1975 PA 228 or under the Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, that included a provision that allowed for a reduction in the credit amount, a termination of the credit, or a percentage of the credit amount previously claimed added back to the tax liability of that taxpayer under that act if the taxpayer failed to comply with any terms of the agreement or other conditions of that credit or if the taxpayer sells or otherwise moves the property for which a credit was claimed less than 5 years after the year in which the credit was originally claimed under former 1975 PA 228 or the Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, shall have a percentage, or the entire amount, of the credit amount previously claimed under former 1975 PA 228 or the Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, added back to the taxpayer’s tax liability under this act in the year that the taxpayer failed to satisfy or breached the conditions of that credit set forth under former 1975 PA 228 or the Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601.
(2) A taxpayer that has claimed a credit under section 35a of former 1975 PA 228 or under section 403 of the Michigan business tax act, 2007 PA 36, MCL 208.1403, for a tangible asset that the taxpayer has sold, transferred out of this state, or otherwise disposed of during the current tax year shall to the extent the credit was used, and at the rate at which the credit was used under former 1975 PA 228 or at the rate at which the credit was used under section 403 of the Michigan business tax act, 2007 PA 36, MCL 208.1403, have an amount equal to the sum of the amounts calculated under subdivisions (a), (b), and (c) added back to the taxpayer’s liability under this act for that same tax year:
(a) Calculate the gross proceeds or benefit derived from the sale or other disposition of tangible assets, other than mobile tangible assets, minus the gain, multiplied by the apportionment factor for the taxable year as prescribed in chapter 14, and plus the loss, multiplied by the apportionment factor for the taxable year as prescribed in chapter 14 from the sale or other disposition reflected in federal taxable income and minus the gain from the sale or other disposition added to the corporate income tax base in section 623.
(b) Calculate the gross proceeds or benefit derived from the sale or other disposition of mobile tangible assets minus the gain and plus the loss from the sale or other disposition reflected in federal taxable income and minus the gain from the sale or other disposition added to the corporate income tax base in section 623. This amount shall be multiplied by the apportionment factor for the tax year as prescribed in chapter 14.
(c) Calculate the federal basis used for determining gain or loss as of the date of the transfer of tangible assets other than mobile tangible assets.
Enacting section 1. This amendatory act takes effect January 1, 2012.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor
