Amended Michigan Business Tax Returns Possible
The Michigan legislature is sending to the governor amendments to four provisions in the Michigan Business Tax Act. The bill is curative and given immediate effect. It would open the way for amended returns.
Following are the affected sections:
1. Definition of "officer" [111(5)(c)]
2. Reasonable Return on Capital [201(2)(h)]
3. Income base NOL Successorship [201(5)]
4. Clarify "ultimate destination" [305(1)(a)]
Changes to the above sections were part of a package of changes included in the MACPA technical corrections proposals. There are seven issues remaining from the original report on needed MBT technical corrections and ambiguity clarifications.
1. COD Income [111(1)(ff)]
2. ITC Recapture [403(3)(d)-(f)]
3. Renaissance Zone Credit [433 (1)]
4. Self-constructed Assets
5. Materials and supplies
6. Credit Ordering
7. Intercompany eliminations for UBG
The Administration has agreed to address #2 and #3 above in the first quarter of 2013. At the moment, opposition to the other 5 issues remains; however, the MACPA will continue to develop a strategy in pursuit of these needed reforms.