The enactment of Public Act 145 of 2007, which repealed the Use Tax on Services and replaced the revenue with a surcharge on the Michigan Business Tax (MBT), also included several special industry or special taxpayer provisions.

New Section 451 – Beverage Container Deposit Law Credit

A distributor or manufacturer who originates a deposit on a beverage container may claim a credit against the Michigan Business Tax equal to 30.5% of expenses incurred during the tax year to comply with the bottle deposit law. The credit percentage drops to 25% in a year where the Section 281 surcharge in not imposed.

The credit is not refundable and any unused credit cannot be carried forward.

Amended Section 113(6) – Purchases From Other Firms - Film Rental or Royalty Payments

The definition of purchases from other firms was amended by adding a new subsection (f) for film rental or royalty payments paid by a theater owner to a film distributor, a film producer, or a film distributor and producer.

For the 2009 tax year, the credit is equal to 50% of the film rental or royalty payments paid. For the 2010 tax year and each year thereafter, the credit is equal to all film rental and royalty payments paid.

Amended Section 409 – Michigan International Speedway Credit

The credit provided in Section 409 was expanded by adding a new Subsection 2. In addition to the credit previously allowed for infield renovation, grandstand and infrastructure upgrades and any other construction and upgrades, Section 409 was amended to provide a credit equal to 50%, for the 2008 tax year, of the amount of necessary expenditures incurred including any professional fees, additional police officers, and any traffic management devices, to ensure traffic and pedestrian safety while hosting the requisite motorsports events in each calendar year.

For the 2009 tax year and each tax year after 2009, the credit is equal to all of the necessary expenditures incurred including any professional fees, additional police officers, and any traffic management devices, to ensure traffic and pedestrian safety while hosting the requisite motorsports events in each calendar year.

The credit is refundable.

Amended Section 445 – New Motor Vehicle Dealer Credit

The new motor vehicle dealer credit was equal to 2% of the amount paid by the taxpayer to acquire new motor vehicle inventory in the tax year limited to $10,000. The amendment to Section 445 reduced the credit percentage to 0.25% and eliminated the $10,000 limitation.

Amended Section 447 – Meijer Grocery Store Credit

The section 447 additional compensation credit was increased from 0.535% to 1.0%. The limitation on the credit was increased from $4.5 Million to $8.5 Million.