MI SB0234

Amends the Income Tax Act of 1967 to revise definitions and tax calculations for financial institutions, effective for tax years beginning after December 31, 2015.

Replaces the "net capital" tax base calculation with "total equity capital" reported on federal regulatory forms (FR Y-9C, FR Y-9SP, or FFIEC call reports) for financial institutions and unitary business groups.

Allows deductions from total equity capital for U.S. obligations, Michigan obligations, and up to 125% of minimum regulatory capitalization requirements for entities subject to Chapter 12 taxes.

Modifies the apportionment formula to exclude foreign business of controlled foreign corporations from the denominator and includes gross business of all unitary group members regardless of individual nexus in Michigan.

Clarifies tax treatment for unitary business groups of financial institutions, including elimination of intercompany transactions and special rules for part-year members acquired or disposed of during the tax year.