Bill Text: MI HB4776 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Corporate income tax: credits; employer credit for purchase of certain personal protection equipment; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 279.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2021-05-05 - Bill Electronically Reproduced 05/04/2021 [HB4776 Detail]
Download: Michigan-2021-HB4776-Introduced.html
HOUSE BILL NO. 4776
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding section 279.
the people of the state of michigan enact:
Sec. 279. (1) Subject to the limitations under this section, for tax years that begin on and after January 1, 2021, an eligible taxpayer may claim a credit against the tax imposed under this part in an amount equal to the amount paid by the eligible taxpayer for qualified personal protective equipment expenses incurred to remain open and in operation during the tax year or $25,000.00, whichever is less. For the 2021 tax year only, an eligible taxpayer may claim a credit against the tax imposed under this part in an amount equal to the amount paid by the eligible taxpayer for qualified personal protective equipment expenses incurred to remain open and in operation during both the 2020 and 2021 tax years or $50,000.00, whichever is less.
(2) For an eligible taxpayer who is a member of a flow-through entity that qualifies for the credit under this section, that eligible taxpayer may claim the 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.
(3) The department shall prescribe the form and manner in which an eligible taxpayer shall claim a credit under this section. The department may require reasonable proof from the eligible taxpayer in support of the expenses claimed under this section. For purposes of calculating the amount of the credit under this section, an eligible taxpayer shall not include any expense for which a deduction was allowed under this part or the internal revenue code in determining adjusted gross income, for the same expense.
(4) If the credit allowed by this section exceeds the tax liability of the eligible taxpayer for the tax year, that portion of the credit that exceeds the tax liability of the eligible taxpayer for the tax year shall be refunded.
(5) As used in this section:
(a) "Eligible taxpayer" means a taxpayer who is either an individual who is engaged in a trade or business and operates under a sole proprietorship, as an independent contractor or a self-employed individual, and has 50 or fewer employees or a taxpayer who is a member of a flow-through entity that is engaged in a trade or business and operates that trade or business with 50 or fewer employees.
(b) "Qualified personal protective equipment expenses" means the amounts paid or incurred for the purpose of reducing the risk of COVID-19 transmission between people on the premises of the business of the taxpayer including, but not limited to, the following:
(i) Gloves, medical masks, N-95 respirators, eye protection, gowns and aprons, boots or closed-toe work shoes, cleaning detergents, hand sanitizers, cleaning products, and tools.
(ii) The retrofitting or installation of equipment to prevent the transmission of COVID-19.
(iii) Any other relevant expense the department, in consultation with the department of health and human services, determines necessary to prevent the transmission of COVID-19.
