MI HB5557

Allows taxpayers with certificated credits under the Michigan Business Tax Act (sections 435 or 437) that were not fully claimed or paid before January 1, 2012 to elect to file under the Business Tax Act instead of the Income Tax Act for their first tax year ending after December 31, 2011.

Permits taxpayers with certificated credits that may be claimed in tax years ending after December 31, 2011 to elect to pay Business Tax Act taxes in the year the credit or unused carryforward may be claimed.

Allows unitary business group members with certificated credits (sections 431 and 434) to file separate returns under the Business Tax Act instead of filing combined returns, and exempts them from filing annual returns under the Income Tax Act.

Extends the election to acquiring taxpayers in merger situations who inherit unclaimed certificated credits from the acquired entity, permitting them to elect Business Tax Act treatment for the first tax year after the acquisition is complete.

Bill is retroactive and effective for tax years beginning after December 31, 2011, contingent on enactment of Senate Bill No. ____ or House Bill No. 5558.