Bill Text: MI HB4372 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Corporate income tax: credits; credit for certain eligible businesses forced to close due to executive orders during 2020 and 2021; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding secs. 279 & 679.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced - Dead) 2021-03-02 - Bill Electronically Reproduced 02/25/2021 [HB4372 Detail]
Download: Michigan-2021-HB4372-Introduced.html
HOUSE BILL NO. 4372
February 25, 2021, Introduced by Reps. Damoose,
Meerman, O'Malley, Bezotte, Beeler, Fink, Outman, Maddock, Carra and Roth
and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 279 and 679.
the people of the state of michigan enact:
Sec. 279. (1) For the 2020 and 2021
tax years, a qualified taxpayer that was forced to close during the 2020 tax
year due to an executive order issued by the governor or an emergency order
issued by the department of health and human services and that eligible
business reported a revenue loss of 25% or more during any quarter of 2020 may
claim a credit against the tax imposed by this part in an amount equal to the
qualified taxpayer's tax liability attributable to business income of that
eligible business for the tax year. For a qualified taxpayer who is a member of
a flow-through entity that owns and operates an eligible business that
qualifies for the credit under this section, that qualified taxpayer may claim
credit against the member's tax liability under this part based on the member's
distributive share of business income reported from that flow-through entity or
an alternative method approved by the department.
(2)
The department shall prescribe the form and manner in which a qualified
taxpayer shall claim a credit under this section. The department may require
reasonable proof from the taxpayer in order to verify the forced closure and
reported revenue loss claimed to qualify for the credit under this section.
(3)
As used in this section:
(a)
"Eligible business" means any of the following businesses whose
primary operation is any of the following:
(i) An entertainment venue.
(ii) An exercise facility.
(iii) A food service establishment.
(iv) A lodging facility.
(v) A recreation facility or place of public
amusement.
(b)
"Entertainment venue" includes an auditorium, arena, banquet hall,
cinema, concert hall, conference center, performance venue, sporting venue,
stadium, or theater.
(c)
"Exercise facility" means a facility in which individuals participate
in individual or group physical activity, including a gymnasium, fitness
center, or exercise studio.
(d)
"Food service establishment" means that term as defined in section
1107 of the food law, 2000 PA 92, MCL 289.1107.
(e)
"Lodging facility" means a hotel, motel, or other establishment engaged
in the business of providing rooms for dwelling, lodging, or sleeping purposes,
except in hospitals, confinement facilities, or nursing homes, to transient
guests, whether or not membership is required for the use of those
accommodations.
(f)
"Qualified taxpayer" means a taxpayer that owns and operates an
eligible business that has fewer than 300 employees per location or a taxpayer
that is a member of a flow-through entity that owns and operates an eligible
business that has fewer than 300 employees per location.
(g)
"Recreation facility or place of public amusement" includes an
amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating
rink, water park, or trampoline park.
Sec. 679. (1) For the 2020 and 2021
tax years, a qualified taxpayer that was forced to close during the 2020 tax
year due to an executive order issued by the governor or an emergency order
issued by the department of health and human services and that eligible
business reported a revenue loss of 25% or more during any quarter of 2020 may
claim a credit against the tax imposed by this part in an amount equal to the
qualified taxpayer's tax liability attributable to business income of that
eligible business for the tax year.
(2)
The department shall prescribe the form and manner in which a qualified
taxpayer shall claim a credit under this section. The department may require
reasonable proof from the taxpayer in order to verify the forced closure and
reported revenue loss claimed to qualify for the credit under this section.
(3)
As used in this section:
(a)
"Eligible business" means any of the following businesses whose
primary operation is any of the following:
(i) An entertainment venue.
(ii) An exercise facility.
(iii) A food service establishment.
(iv) A lodging facility.
(v) A recreation facility or place of public
amusement.
(b)
"Entertainment venue" includes an auditorium, arena, banquet hall,
cinema, concert hall, conference center, performance venue, sporting venue, stadium,
or theater.
(c)
"Exercise facility" means a facility in which individuals participate
in individual or group physical activity, including a gymnasium, fitness
center, or exercise studio.
(d)
"Food service establishment" means that term as defined in section
1107 of the food law, 2000 PA 92, MCL 289.1107.
(e)
"Lodging facility" means a hotel, motel, or other establishment
engaged in the business of providing rooms for dwelling, lodging, or sleeping
purposes, except in hospitals, confinement facilities, or nursing homes, to
transient guests, whether or not membership is required for the use of those
accommodations.
(f)
"Qualified taxpayer" means a taxpayer that owns and operates an
eligible business that has fewer than 300 employees per location.
(g)
"Recreation facility or place of public amusement" includes an
amusement park, arcade, bingo hall, bowling alley, casino, nightclub, skating
rink, water park, or trampoline park.
Enacting section 1. This amendatory act is intended to be retroactive and applies retroactively to tax years that begin on and after January 1, 2020.
