MI SB1006

Clarifies that persons in construction (major groups 15, 16, 17) and motor freight transportation (NAICS 484) can only deduct payments to subcontractors as "purchases from other firms" if they did not claim a credit under section 417 in the same tax year.

Defines "professional employer organization" as an entity that manages human resources for other entities by maintaining direction and control of employees, paying wages and taxes, and retaining hiring/firing rights.

Expands "purchases from other firms" to include film rental or royalty payments paid by theater owners to film distributors or producers for the 2008 tax year and thereafter.

Adds payments between licensed contractors under articles 25 and 26 of the occupational code to the definition of deductible purchases from other firms.

Applies retroactively and effective for taxes levied after December 31, 2007, clarifying legislative intent that the deduction restriction applies only when a section 417 credit was actually claimed.