MI HB5517

Creates a $0.005 per container tax credit for beverage distributors who originate deposits on returnable containers, effective for tax years beginning January 1, 2026

Credit amount adjusts annually starting in 2027 based on the U.S. Consumer Price Index for all urban consumers

Applies to both individual income tax (Section 279) and corporate income tax (Section 679), allowing pass-through entities like partnerships, LLCs, and S corporations to allocate credits to owners

Credit is fully refundable if it exceeds the taxpayer's tax liability for the year

Eligibility requires distributors to attach the report mandated under Michigan's bottle deposit law (1976 IL 1) to their annual tax return