MI SB0195

Amends Michigan's Corporate Income Tax Act to clarify application of federal business interest expense limitations under Internal Revenue Code Section 163(j) for unitary business groups effective for tax years beginning January 1, 2022

Allows persons with excess business interest expense to deduct that amount through other members of the unitary business group that have unused business interest limitation capacity

Exempts persons from business interest limitations if: their deduction is not limited under federal law, they qualify for federal exemptions, they engage in excepted trades or businesses, or their affiliated group meets exemption conditions

Requires business interest carryforwards to follow departing members when they leave a unitary business group and prohibits carryforwards attributable to intra-group interest payments from transferring to departing members

Establishes rules for timing of deductions requiring current year business interest to be deducted before carryforwards, with carryforwards used in chronological order beginning with the earliest tax year