Bill Text: MI HB5546 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.
Spectrum: Slight Partisan Bill (Democrat 30-18)
Status: (Engrossed) 2024-06-18 - Reassigned To Committee On Appropriations [HB5546 Detail]
Download: Michigan-2023-HB5546-Engrossed.html
HOUSE BILL NO. 5546
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding sections 279 and 679.
the people of the state of michigan enact:
Sec. 279. (1) Except as otherwise provided under this section, for tax years that begin on and after January 1, 2024, a taxpayer that is a distributor who originates a deposit on a beverage container may claim a credit against the tax imposed under this part equal to $0.005 per returnable container sold during the tax year. Beginning with the 2025 tax year and each tax year after 2025, the amount of the credit allowed under this subsection must be adjusted by the percentage increase in the United States Consumer Price Index for the immediately preceding calendar year.
(2) To be eligible for a credit under this section, the taxpayer shall attach the report required under section 3a of 1976 IL 1, MCL 445.573a, to the annual return filed under this part on which a credit under this section is claimed.
(3) If the distributor is a partnership, limited liability company, or subchapter S corporation, the credit under this section may be claimed against the partner's, member's, or shareholder's tax liability under this part based on the partner's, member's, or shareholder's proportionate share of ownership or an alternative method approved by the department. If the credit allowed by this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability of the taxpayer for the tax year must be refunded.
(4) As used in this section:
(a) "Beverage container", "distributor", and "returnable container" mean those terms as defined in section 1 of 1976 IL 1, MCL 445.571.
(b) "United States Consumer Price Index" means the United States Consumer Price Index for all urban consumers as defined and reported by the United States Department of Labor, Bureau of Labor Statistics.
Sec. 679. (1) Except as otherwise provided under this section, for tax years that begin on and after January 1, 2024, a taxpayer that is a distributor who originates a deposit on a beverage container may claim a credit against the tax imposed under this part equal to $0.005 per returnable container sold during the tax year. Beginning with the 2025 tax year and each tax year after 2025, the amount of the credit allowed under this subsection shall be adjusted by the percentage increase in the United States Consumer Price Index for the immediately preceding calendar year.
(2) To be eligible for the credit under this section, the taxpayer shall attach the report required under section 3a of 1976 IL 1, MCL 445.573a, to the annual return filed under this part on which a credit under this section is claimed.
(3) If the credit allowed by this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability of the taxpayer for the tax year must be refunded.
(4) As used in this section:
(a) "Beverage container", "distributor", and "returnable container" mean those terms as defined in section 1 of 1976 IL 1, MCL 445.571.
(b) "United States Consumer Price Index" means the United States Consumer Price Index for all urban consumers as defined and reported by the United States Department of Labor, Bureau of Labor Statistics.
