MI HB5720

Allows taxpayers with certificated credits under sections 435, 437, or 36109 of the natural resources and environmental protection act to elect to file and pay tax under the Michigan business tax (MBT) instead of the income tax act of 1967.

Requires taxpayers electing MBT filing to continue filing under MBT for each tax year until their certificated credit and any carryforwards are exhausted.

Establishes that a unitary business group (rather than individual members) shall file returns and claim certificated credits when a member elects MBT filing.

Sets tax liability as the greater of: (1) MBT liability after credits, or (2) income tax liability minus certificated credits, with specific limitations on business loss deductions and nonrefundable credits.

Permits taxpayers with farmland preservation credits (section 36109) whose credits became ineligible due to farmland owner death or property transfer to an estate or trust to elect MBT filing in the first eligible tax year.