Taxpayers Will Have The Option to File the MBT or the CIT
If a taxpayer has received a certificated tax certificate, they must apply it to the higher calculation of the Michigan Business Tax (MBT) or the Corporate Income Tax (CIT) but file it on the MBT form.
The following is from the Michigan Economic Development Corporation (MEDC):
The tax reform package of bills that were signed into law earlier this year will allow taxpayers to receive the benefits for their MBT certificated credits by electing to continue to file the MBT for the duration for their credits. In the case of a taxpayer with unused MEGA credits, if their MEGA is for five years, they would be making the election to file the MBT for the five year duration.
Companies electing to claim their credits and file the MBT will apply the value of the certificated credit to the higher of either the MBT liability, including non-certificated credits, or the calculated CIT liability as if they were subject to the CIT. Companies must calculate the liability on both each year. Forms will not be out until the end of the year.
Companies may also opt-out of this option and simply file under the CIT if they would have a lower CIT liability compared to the value of their certificated credit under the MBT formula, but they would forego any remaining credits.
The above was provided by: Dawn Baetsen, CED, Partner
Atlas Insight, LLC
1438 Glen Ellyn Dr. SE
Grand Rapids, MI 49546