Gov. Rick Snyder signs bill paving the way for Michigan companies to continue growingLegislation allows state to continue progress
Friday, Sept. 12, 2014
LANSING, Mich. – Gov. Rick Snyder today signed legislation clarifying the original intent of the Michigan Business Tax Act to make sure Michigan businesses are not penalized for investing in the state.
“Clarifying the original intent of the 2007 law is a common-sense solution encouraging companies to continue investing and creating jobs in Michigan,” Snyder said. “This bipartisan effort allows us to continue the progress we have made over the last four years in order to continue our comeback.”
Senate Bill 156, sponsored by state Sen. Mark Jansen, eliminates a loophole created by a 1970 statute that would have given some out-of-state companies a far lower tax liability under the Michigan Business Tax than similar Michigan companies. The loophole, which came to light in a recent court case, would have allowed out-of-state companies to use a different tax formula for 2008 through 2010, giving them an unfair competitive advantage over Michigan businesses.
The Corporate Income Tax replaced the Michigan Business Tax in 2012, simplifying taxpayer compliance and ending the unfair double taxation of small businesses.
The bill, which was approved overwhelmingly by the state Senate and House of Representatives, is now Public Act 282 of 2014.
For more information on legislation, visit legislature.michigan.gov.