HOUSE BILL No. 5557

April 13, 2016, Introduced by Rep. Farrington and referred to the Committee on Tax Policy.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 680 (MCL 206.680), as amended by 2012 PA 70.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 680. (1) Notwithstanding any other provision of this

part, except as otherwise provided in ~~subsection (2)~~ this section

for a certificated credit under section 435 or 437 of the Michigan

business tax act, 2007 PA 36, MCL 208.1435 and 208.1437, a taxpayer

that has been approved to receive, has received, or has been

assigned a certificated credit that has not been fully claimed or

paid prior to January 1, 2012 may, for the taxpayer's first tax

year ending after December 31, 2011 only, elect to file a return

and pay the tax imposed by the Michigan business tax act, 2007 PA

36, MCL 208.1101 to 208.1601, in lieu of the tax imposed by this

part. An election under this subsection shall continue for the

period prescribed in section 500(1) of the Michigan business tax

act, 2007 PA 36, MCL 208.1500.

(2) A taxpayer with a certificated credit under section 435 or

437 of the Michigan business tax act, 2007 PA 36, MCL 208.1435 and

208.1437, which certificated credit may be claimed in a tax year

ending after December 31, 2011 may elect to pay the tax imposed by

the Michigan business tax act, 2007 PA 36, MCL 208.1101 to

208.1601, in the tax year in which that certificated credit or any

unused carryforward may be claimed in lieu of the tax imposed by

this part.

(3) A taxpayer that is a member of a unitary business group

and that has a certificated credit under sections 431 and 434(2)

and (5) of the Michigan business tax act, 2007 PA 36, MCL 208.1431

and 208.1434, is not required to file a combined return as a

unitary business group and may elect to file a separate return and

pay the tax, if any, under the Michigan business tax act, 2007 PA

36, MCL 208.1101 to 208.1601.

(4) A taxpayer that elects to pay the tax imposed by the

Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601,

under this section is not required to file an annual return under

this part.

(5) If a taxpayer acquires by merger all rights, privileges,

and liabilities of another person or member of a unitary business

group that has been approved to receive, has received, or has been

assigned a certificated credit under section 431, 435, or 437 of

the Michigan business tax act, 2007 PA 36, MCL 208.1431, 208.1435,

and 208.1437, that has not been fully claimed or paid prior to the

date of the merger, and that person or member of the unitary

business group has filed a return or has been included in a

combined return and paid the tax imposed by the Michigan business

tax act, 2007 PA 36, MCL 208.1101 to 208.1601, for a tax year

ending after December 31, 2011, in lieu of the tax imposed by this

part, in order to claim that certificated credit, then the

acquiring taxpayer may, for the first tax year ending after the

acquisition and the assignment of the certificated credit or

credits is complete only, elect to pay the tax imposed by the

Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, in

lieu of the tax imposed by this part. A taxpayer that elects under

this subsection to pay the tax imposed by the Michigan business tax

act, 2007 PA 36, MCL 208.1101 to 208.1601, for a tax year ending

before the enactment date of the amendatory act that added this

subsection and for which the taxpayer has already filed under this

part shall file an amended return for that tax year if the taxpayer

filed a return under this part and each tax year thereafter, if

applicable, and file an original return as provided under section

505 of the Michigan business tax act, 2007 PA 36, MCL 208.1505. An

election under this subsection shall continue for the period

prescribed in section 500 of the Michigan business tax act, 2007 PA

36, MCL 208.1500.

(6) ~~(5)~~ As used in this section, "certificated credit" means

that term as defined in section 107 of the Michigan business tax

act, 2007 PA 36, MCL 208.1107.

Enacting section 1. This amendatory act is retroactive and