Skip Navigation
Michigan, Official Portal for the State of Michigan Home
close print view
  Corporate Income Tax
Credits 11. Can a taxpayer use data from its MBT tax periods in calculating the loss adjustment for purposes of determining eligibility for the small business alternative credit under MCL 206.671?
Yes, the Department will allow the use of a "loss adjustment" from a period prior to the start of the CIT for purposes of determining qualification for the small business alternative credit under MCL 206.671. In computing eligibility for the credit, the CIT defines "loss adjustment" to mean, in relevant part, "the amount by which adjusted business income was less than zero in any of the 5 tax years immediately preceding the tax year for which eligibility for the credit under this section is being determined." MCL 206.671(10)(f). Therefore, a taxpayer may utilize data for the respective tax years under the MBT to calculate eligibility for the credit for CIT tax years. A taxpayer may only use a loss adjustment amount from a year in which it qualified for the credit.

In the case of a unitary business group, members of the group may contribute separate year loss adjustment history which may be applied against the credit disqualifiers on a "first-in- first-out" basis. However, the UBG is prohibited from using a loss adjustment from a year in which the members and/or group did not qualify for the credit.

Michigan Business One Stop
Link to Department and Agencies Web Site Index
Link to Statewide Online Services Index
Link to Statewide Web-based Surveys
Link to RSS feeds available on this site
FAQ Categories
 •  Index of Tax FAQ's
 •  Individual Income Tax
 •  Business Taxes
 •  1099-MISC Filing Requirements
 •  Collections/Delinquent Accounts
 •  Tax Increment Financing
 •  Service Fee/PILOT Housing
 •  State Real Estate Transfer Tax
 •  Native American
 •  Michigan Business Tax
 •  Status of Individual Refund
 •  Health Insurance Claims Assessment (HICA) Act
 •  Energy Home Improvement Credit
 •  Corporate Income Tax
QR code Home
PoliciesMichigan Survey

Copyright © 2014 State of Michigan