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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667

Blog: www.EdKisscorni.com/Blog1
Email: Ed@EdKisscorni.com
 



 



 

 Blog 
Tuesday, October 12 2010

A Michigan Business Tax Credit Enacted for Cigarette Dealers 

Public Act 200 of 2010 (PA 2010-200) specifies that a taxpayer that is a wholesale dealer, retail dealer, distributor, manufacturer, or seller that had receipts from the sale of cigarettes or tobacco products may claim a credit against the Michigan Business Tax, provided that the taxpayer paid federal and state excise taxes on the tobacco products during the 2008 and 2009 tax years.

The refundable credit is only available for the taxpayer's first tax year that begins after 2010. The credit is equal to the sum of (1) the difference between the taxpayer's modified gross receipts tax liability for the 2008 tax year and the taxpayer's modified gross receipts tax liability if the taxpayer had been allowed to deduct 100% of the federal and state excise taxes instead of 60% of those taxes; and (2) the difference between the taxpayer's modified gross receipts tax liability for the 2009 tax year and the taxpayer's modified gross receipts tax liability if the taxpayer had been allowed to deduct 100% of the federal and state excise taxes instead of 75% of those taxes. 

The credit effectively eliminates the previous phase-in for the gross receipts deduction for federal and state excise taxes.

Public Act 200 of 2010 is effective October 5, 2010, and applicable as noted in the statute.

Posted by: Ed Kisscorni AT 12:07 pm   |  Permalink   |  0 Comments  |  Email
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