MI SB1050

Adds Section 339 treating certain limited liability companies converted under Michigan law as corporations for income tax purposes, unless they are disregarded entities for federal purposes with a corporate regarded owner.

Amends Sections 699 and 845 to clarify that disregarded entities for federal income tax purposes are classified as disregarded entities under state law, and establishes the same LLC conversion rules across multiple tax parts.

Modifies the definition of "flow-through entity" in Sections 12, 607, 701, and 805 to exclude entities treated as corporations under the new Section 339 provisions.

Updates internal revenue code reference dates in Sections 12 and 607 to allow taxpayers to use either the January 1, 2018 version or the current tax year version of the IRC.

Bill takes effect only if Senate Bills 982, 983, and 984 are enacted into law; effective date is December 23, 2024.