MI HB5666

Replaces the "net capital" tax base calculation for financial institutions with a new "total equity capital" approach, effective for tax years beginning after December 31, 2017.

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

Adds four adjustments to equity capital before allocation or apportionment: deduct average daily book value of U.S. obligations, Michigan obligations, equity capital of regulated persons (up to 125% of minimum regulatory requirements), and a flat $20,000,000 deduction.

Eliminates the previous exclusion of up to 125% of minimum regulatory capitalization requirements and clarifies treatment of unitary business groups of financial institutions.

Makes this act contingent upon Senate Bill No. 234 of the 98th Legislature being enacted into law.