MI SB1037

Clarifies and modifies definitions of "gross receipts" for Michigan business tax purposes, including phased-in exclusions for bad debt deductions, taxes collected, excise taxes on fuel/cigarettes/alcohol, and dividends from foreign entities over 5-year periods starting in 2008.

Adjusts business income tax base calculations by allowing deductions for net operating losses, affordable housing project gains, charitable contributions to education trust funds, and book-tax differences for qualifying assets over 15 years beginning in 2015.

Revises sales apportionment rules for tangible personal property, real property leases, intangible property royalties, service performance, loan originations, securities transactions, and telecommunications services to determine Michigan taxable sales.

Expands historic rehabilitation tax credits allowing qualified taxpayers to claim 25% of qualified expenditures, with additional credits of 10-15% for projects under $1 million or up to 15% for high-impact projects approved through 2013, subject to recapture provisions if property is sold or revoked within 5 years.

Applies retroactively to January 1, 2008 to clarify original intent of 2007 PA 36 and takes immediate effect upon enactment.