Legislation to Provide Michigan Business Tax and Income Tax Credits Introduced
Last week Thursday, the Michigan Senate passed Senate Bill 0967 and Senate Bill 0999 to give companies tax credits for the cost of preparing for last year's repealed Use Tax on Services. The bills would give businesses credits on the Michigan Business Tax and Michigan Income Tax.
The legislation must still be passed in the House of Representatives and signed by the Governor. Both seem doubtful because of the delicate nature of this year's budget.
The Use Tax on Services was part of the last-minute deal reached in the early morning hours of October 1st as a way to pay for a seriously under funded Fiscal Year 2008 budget and prevent a prolonged government shutdown. After an outcry from the business community, the Legislature was repealed on December 1st. The lost revenue was replaced by a MBT surcharge and reduced credits.
Testimony in December before the Senate Finance Committee indicated businesses spent between $75 million to more than $900 million preparing for the tax.
Thank you Ed for your efforts on behalf of all CPA's in Michigan to keep us up to date and informed on the new MBT.
I personally really appreciate all your efforts.
Reply to this