September 26, 2013, Introduced by Rep. Haugh and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 673 (MCL 206.673), as added by 2011 PA 181.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 673. (1) A taxpayer that has claimed a credit under
former 1975 PA 228 or under the Michigan business tax act, 2007 PA
36, MCL 208.1101 to 208.1601, that included a provision that
allowed for a reduction in the credit amount, a termination of the
credit, or a percentage of the credit amount previously claimed
added back to the tax liability of that taxpayer under that act if
the taxpayer failed to comply with any terms of the agreement or
other conditions of that credit or if the taxpayer sells or
otherwise moves the property for which a credit was claimed less
than 5 years after the year in which the credit was originally
claimed under former 1975 PA 228 or the Michigan business tax act,
2007 PA 36, MCL 208.1101 to 208.1601, shall have a percentage, or
the entire amount, of the credit amount previously claimed under
former 1975 PA 228 or the Michigan business tax act, 2007 PA 36,
MCL 208.1101 to 208.1601, added back to the taxpayer's tax
liability under this act in the year that the taxpayer failed to
satisfy or breached the conditions of that credit set forth under
former 1975 PA 228 or the Michigan business tax act, 2007 PA 36,
MCL 208.1101 to 208.1601.
(2) A taxpayer that has claimed a credit under section 35a of
former 1975 PA 228 or under section 403 of the Michigan business
tax act, 2007 PA 36, MCL 208.1403, for a tangible asset that the
taxpayer has sold, transferred out of this state, or otherwise
disposed of during the current tax year shall to the extent the
credit was used, and at the rate at which the credit was used,
under
former 1975 PA 228 or at the rate at which the credit was
used
under section 403 of the Michigan business tax act, 2007 PA
36,
MCL 208.1403, have an amount equal
to the sum of the amounts
calculated
under subdivisions (a) , and
(b) , and (c) added back to
the taxpayer's liability under this act for that same tax year:
(a) Calculate the gross proceeds or benefit derived from the
sale or other disposition of tangible assets, other than mobile
tangible assets, minus the gain, multiplied by the apportionment
factor for the taxable year as prescribed in chapter 14, and plus
the loss, multiplied by the apportionment factor for the taxable
year as prescribed in chapter 14 from the sale or other disposition
reflected
in federal taxable income. and minus the gain from the
sale
or other disposition added to the corporate income tax base in
section
623.
(b) Calculate the gross proceeds or benefit derived from the
sale or other disposition of mobile tangible assets minus the gain
and plus the loss from the sale or other disposition reflected in
federal
taxable income. and minus the gain from the sale or other
disposition
added to the corporate income tax base in section 623.
This amount shall be multiplied by the apportionment factor for the
tax year as prescribed in chapter 14.
(3) (c)
Calculate A taxpayer that has
claimed a credit under
section 35a of former 1975 PA 228 or under section 403 of the
Michigan business tax act, 2007 PA 36, MCL 208.1403, for a tangible
asset that the taxpayer has sold, transferred out of this state, or
otherwise disposed of during the current tax year shall to the
extent the credit was used, and at the rate at which the credit was
used, calculate the federal basis used for determining gain or loss
as of the date of the transfer of tangible assets other than mobile
tangible assets and add that amount back to the taxpayer's
liability under this act for that same tax year.
Enacting section 1. This amendatory act is retroactive and
effective for tax years beginning after December 31, 2011.