M74. For purposes of MCL 208.1113(6)(e), how is subcontractor defined?Under the MBT, persons included in SIC codes 15, 16, and 17, that do not qualify for the credit under MCL 208.1417 may deduct "payments to subcontractors for a construction project under a contract specific to that project" as purchases from other firms. MCL 208.1113(6)(e).
The term "subcontractor" is not defined by the statute. Accordingly, the Department will apply the common, ordinary meaning of "subcontractor" to the statute. A "subcontractor" is an individual or entity that enters into a contract and assumes some or all of the obligations of a person included in SIC codes 15, 16, and 17 as set forth in the primary contract specific to a project.