HB 5254 Summary

• Caps total certificated credits under multiple sections at $200,000,000 for fiscal year 2019-2020 and $100,000,000 for fiscal year 2020-2021.

• Maintains existing requirements for taxpayers claiming certificated credits to continue filing Michigan business tax returns until credits are exhausted.

• Repeals the entire Michigan business tax act (2007 PA 36) effective October 1, 2021, with the tax no longer applying to business activity after September 30, 2021.

• Clarifies calculation methods for taxpayer tax liability when certificated credits are claimed, ensuring taxpayers pay the greater of calculated business tax or income tax liability minus credits.

• Allows certain taxpayers in unitary business groups with specific battery manufacturing credits to file separate returns and claim credits under modified conditions with job creation requirements.