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MI SB1097
Bill
AI Summary
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Amends Michigan's Corporate Income Tax Act to redefine "federal taxable income" by excluding three Internal Revenue Code sections (163(j), 168(k), and 199) from Michigan tax calculations, effective January 1, 2018
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Decouples Michigan tax law from federal limitations on business interest expense deductions (IRC section 163(j)) and federal bonus depreciation rules (IRC section 168(k))
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Defines key tax terms including "flow-through entity," "foreign operating entity," "gross receipts," and "insurance company" to clarify which entities and income sources are subject to Michigan's business tax
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Provides detailed exclusions from "gross receipts" including agency transactions, advertising media purchases, real property management deposits, capital asset sales, insurance proceeds, and loan principal payments
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Made retroactively effective to January 1, 2018, applying to all business activity occurring after December 31, 2017
Legislative Description
Corporate income tax; business income; new federal limitations on interest expense deductions; decouple. Amends sec. 607 of 1967 PA 281 (MCL 206.607).
Corporate income tax: business income
Last Action
Vetoed By Governor 12/28/2018 12/31/18 Addenda
12/31/2018