The four year statute of limitations is enforced in the denial of a Single Business Tax (SBT) refund even though the taxpayer had a signed contractural agreement with the Michigan Economic Growth Authority (MEGA) allowing the tax credits.
In a taxpayer was barred from claiming the MEGA employment credit against the SBT because the amended returns were filed beyond the statute of limitations. The taxpayer and MEGA had entered into a contract regarding the number of jobs to create and other conditions to meet in order for the taxpayer to qualify for the credit. The taxpayer requested, and MEGA granted, credit certification even though the application was not timely. The taxpayer then filed amended returns.
Reversing the trial court, the appellate court determined that contract law was inapplicable. Under the MEGA contract, the taxpayer was rewarded not with cash, but with a tax credit. The former SBT law allowed the taxpayer to apply the credit to the annual tax liability and receive a refund. However, the amended returns had to be filed within the statute of limitations. If the amended returns had been timely filed, the taxpayer would have been entitled to the refund. Accordingly, the credit refunds were denied. [Asama Coldwater Manufacturing, Inc. v. Department of Treasury, Michigan Court of Appeals, No. 290584, June 8, 2010]