Senate Bill 156 Will Open Up MBT Refund Opportunities
Senate Bill 156 would amend the Michigan Business Tax (MBT) Act to do the following:
Enact a new subparagraph (ff) to create an exclusion from the definition of "gross receipts" for amounts attributable to the taxpayer pursuant to a discharge of indebtedness. [MCL 208.1111(1)(ff)]
Enact a tax benefit rule for recapture of investment tax credit by limiting the recapture “to the extent the credit was used, and at the rate the credit was used …”. [MCL 208.1403(3)]
Revise the credit for a taxpayer located and conducting business in a renaissance zone before December 1, 2002, by providing for the credit to be based either on the current calculation for those taxpayers, or on the calculation allowed for other business taxpayers in a renaissance zone, whichever was greater. [MCL 1433(1)]
The bill will add a new Section 508 which will allow a taxpayer to claim a refund if, as a result of the bill's amendments, the taxpayer had an overpayment of tax. Refunds can be claimed only for tax years starting after December 31, 2009. The taxpayer must file a claim for refund after January 1, 2015, but no later than December 31, 2015 on a form, process or format prescribed by the Department of Treasury.
The bill states: "This amendatory act is retroactive and is effective for tax years beginning on and after January 1, 2010.
Now is the time to review the 2010 and 2011 MBT returns to determine if a refund claim can be filed in 2015.