The Small Business Alternative Credit "is available to any taxpayer with
gross receipts that do not exceed $20,000,000.00 and with adjusted business
income minus the loss adjustment that does not exceed $1,300,000.00 as adjusted
annually for inflation using the Detroit consumer price index" and subject to
certain additional disqualifiers. MCL 208.1417(1) (emphasis added).
Specifically, if gross receipts exceed $19,000,000, the credit is reduced
"Taxpayer" is defined as "a person or a unitary business group." MCL
208.1117(5). The gross receipts and adjusted business income thresholds under
MCL 207.1417(1) apply to taxpayers. Thus, for a taxpayer that is a unitary
business group, the gross receipts and adjusted business income thresholds are
those of the unitary business group.
The disqualifiers under MCL 208.1417(1)(a) and (b) apply to a taxpayer that is a
unitary business group if such disqualifiers apply to any member of that unitary
business group. For example, a taxpayer that is a unitary business group is
disqualified from taking the Credit under MCL 208.1417 if that unitary business
group includes a member that is a partnership and any one partner of that
partnership receives more than $180,000.00 as a distributive share of the
adjusted business income minus loss adjustment of the partnership.
Similarly, the reduction percentages under MCL 208.1417(1)(c) apply to a
taxpayer that is a unitary business group if such reduction percentages apply to
any member of that unitary business group. For example, the Small Business
Alternative Credit of a taxpayer is reduced by 20% if the taxpayer is a unitary
business group that includes a member that is a corporation and the compensation
and directors' fees of an officer of that member corporation exceed $160,000.00
but are less than $165,000.00.
Finally, the amounts described in MCL 208.1417(1)(a) and (b) received by an
individual, partner, member, shareholder, or officer of a member of a unitary
business group are not combined with similar amounts received from other members
of the unitary business group for purposes of the disqualifiers and reduction