MI HB4825

Creates a $0.005 tax credit per returnable beverage container sold for distributors who originate deposits, applicable against both individual income tax and corporate income tax starting January 1, 2026

Requires annual adjustment of the credit amount beginning in 2027 based on the percentage increase in the United States Consumer Price Index for all urban consumers

Distributors must attach the report required under Michigan's bottle deposit law (1976 IL 1, MCL 445.573a) to their annual tax return to claim the credit

Allows pass-through entities (partnerships, LLCs, S corporations) to allocate the credit to partners, members, or shareholders based on proportionate ownership or an alternative department-approved method

Credit is fully refundable if it exceeds the taxpayer's tax liability for the year; bill takes effect only if HB 4823 or its Senate companion is enacted into law