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MI HB5202
Bill
Status
11/6/2019
Primary Sponsor
Joseph Tate
Click for details
AI Summary
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Adds a new deduction for individual income tax allowing taxpayers to deduct 50% of recognized gains from selling a business to employees or converting it to an employee-owned business, effective for tax years beginning January 1, 2020.
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Adds a parallel deduction to corporate income tax allowing corporations to deduct 50% of recognized gains from selling a business to employees or converting to an employee-owned business, effective for tax years beginning January 1, 2020.
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Defines "employee-owned business" as an employee-owned corporation under the Employee-Owned Corporation Act (1985 PA 152, MCL 450.732).
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Makes technical corrections to existing tax code language, including correcting statutory references in subsections regarding retirement benefit deductions.
Legislative Description
Individual income tax; deductions; deduction for sale of businesses to employees or conversion to an employee-owned business; create. Amends secs. 30 & 623 of 1967 PA 281 (MCL 206.30 & 206.623).
Individual income tax: deductions
Last Action
Bill Electronically Reproduced 11/07/2019
11/7/2019