Bill Text: MI HB4967 | 2011-2012 | 96th Legislature | Engrossed
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-Engrossed.html
HB-4967, As Passed Senate, September 28, 2011
HOUSE BILL No. 4967
September 13, 2011, Introduced by Rep. Farrington and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(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.
