MI HB4377

Requires taxpayers claiming certificated credits to file a return and pay Michigan business tax annually until the credit is fully used up, establishing ongoing filing obligations for credit holders.

Allows certain taxpayers with certificated credits under sections 435 and 437 to elect to pay business tax instead of income tax in years they claim those credits, with election consequences lasting until credits are exhausted.

Permits members of unitary business groups holding specific certificated credits under sections 431 and 434 to file separately and claim credits individually, subject to a $25,000,000 annual redemption cap for no more than 3 years.

Establishes that certificated credits must be claimed in the same tax year they are certified, effective upon the bill's enactment, while previously certified credits require 90-day notice to the department before claiming.

Allows taxpayers with farmland development rights agreement credits under the Natural Resources and Environmental Protection Act to elect business tax filing when ownership transfers to estates or trusts following an owner's death after December 31, 2011.