Senate Bill 987 Summary

• Amends the Insurance Code of 1956 to establish a reciprocal tax on alien and foreign insurers doing business in Michigan that matches taxes imposed on domestic Michigan insurers in other states or countries.

• Allows insurers to credit against the tax imposed under this section an amount equal to PTP certificate credits they would be eligible to claim under the income tax act for tax years 2014 through 2023.

• Requires domestic insurers to maintain their principal place of business in Michigan, employ knowledgeable personnel in-state, conduct substantial operations in Michigan, and comply with section 5256 record-keeping requirements to qualify as domestic insurers.

• Specifies that taxes collected are subject to the Michigan business tax act (2007 PA 36) or the income tax act of 1967 (1967 PA 281) and shall be administered by the state treasurer under 1941 PA 122.

• Becomes effective only upon enactment of Senate Bills 985 and 986 in the same legislative session.