MI SB0516

Adds definition of "applicable controlled foreign corporation" to mean a controlled foreign corporation where a financial institution owns greater than 50% and consolidated financial reporting is required under generally accepted accounting principles.

Revises the tax base calculation for financial institutions to be net capital subject to specified adjustments, including deductions for United States obligations, Michigan obligations, and equity capital of certain subsidiary entities and controlled foreign corporations (limited to 125% of minimum regulatory capitalization requirements).

Changes net capital determination from a 5-year average calculation to net capital as of the close of the current tax year.

Excludes foreign business of applicable controlled foreign corporations from the denominator of the gross business factor used for apportionment to Michigan.

Clarifies that for unitary business groups of financial institutions, net capital excludes inter-company investments and requires elimination of inter-company gross business transactions in the apportionment formula.