Changes in Michigan Business Taxes
On 25 May, Governor Rick Snyder signed measures that replace the four-year-old Michigan Business Tax (MBT) with a Corporate Income Tax (CIT) effective 1 January 2012.
The primary differences between the two tax systems are that the modified gross receipts tax portion of the MBT no longer exists under the CIT, flow through entities are not subject to the CIT and virtually all of Michigan’s business incentives are no longer embedded in the tax code. Major portions of the CIT are similar to the business income tax component of the MBT except with respect to tax credits. Under the CIT, all of the credits currently provided for under the MBT would be eliminated except for the small business credit; however, taxpayers that have certain “certificated credits” would be able to claim these certificated credits if they make an election to continue to file an MBT return under the MBT Act until the “certificated credit” and any carryforward is exhausted.
To provide clients with an overview of these tax changes and how they affect business, Ernst & Young LLP cordially invites you to join this Thought Center Webcast. We will address the following topics on the upcoming Webcast:
- Corporate Income Tax provisions
- Electing to continue to file under the MBT to claim certificated credits
- Effective dates and compliance considerations
- Financial accounting issues to consider
- Other legislation, developments impacting Michigan taxpayers
This is an interactive webcast and we encourage you to ask questions.
Chester Abell, Ernst & Young LLP, National Director of Tax Accrual and IFRS Tax Services, Washington, D.C.
Greg Van Tol, Ernst & Young LLP, Indirect Tax and State and Local Tax, Grand Rapids, Michigan
Daniel Domenicucci, Ernst & Young LLP, Indirect Tax and State and Local Tax, Detroit, Michigan
Chris Gunder, Ernst & Young LLP, National Director of State Income and Franchise Tax, Detroit, Michigan