Passed in the Senate, Pending in the House
Senate Bill 367, introduced in the Michigan Senate, would revise the corporate income tax law to allow "affiliated groups" to elect to file combined returns. The term "affiliated group" would be defined as it is in IRC §1504, except that it would include all persons incorporated in the United States (other than a foreign operating entity) that are commonly owned, directly or indirectly, by any member of the affiliated group and other members of the group of which more than 50% of the ownership interest with voting rights or ownership interests that confer comparable rights is directly or indirectly owned by a common owner or owners.
A taxpayer that is part of an affiliated group would be allowed to elect to have all members of the affiliated group treated as a unitary business group. This group would then file a combined return for 10 years, with the option to renew the election once for another 10 years. The definition of "unitary business group" would be revised to include an affiliated group that makes the election to file as a unitary business group.
Senate Bill 367 has passed the Senate on a unanimous vote and is currently pending in the House Tax Policy Committee.