MI HB6117

New motor vehicle dealers licensed under Michigan vehicle code may claim a tax credit equal to 0.25% of amounts paid to acquire new motor vehicle inventory for tax years 2008, 2009, and 2010.

Large retail taxpayers meeting specific criteria may claim a credit equal to 1.0% of in-state compensation, capped at $8,500,000, for tax years 2008, 2009, and 2010; requires 17,000,000 square feet of retail space, 2,000,000 square feet of warehouse space, and sales of specified items representing over 35% of total sales.

Smaller retail taxpayers meeting alternative criteria may claim a credit equal to 0.125% of in-state compensation, capped at $300,000, for tax years 2008, 2009, and 2010; requires 2,500,000 square feet of retail space and 1,400,000 square feet of combined warehouse, headquarters, and transportation services space.

Credits cannot be refunded or carried forward if they exceed tax liability in the tax year, and taxpayers cannot claim both the 1.0% and 0.125% credits simultaneously.

Bill takes effect only if all 16 referenced companion bills from the 95th Legislature are enacted into law.