State Tax Commission Policy Statement Regarding Applications for Tax Credits for State Assessed Utility Roll

Public Act 282 of 1905, as amended, allows for credit against the tax imposed for eligible expenses incurred in the State of Michigan by railroad, car line/railcar entities, and wired two-way communication companies for maintenance or improvements of rights of way, maintenance or improvement of eligible companies’ qualified rolling stock, certain expenditures related to the purchase and installation of eligible telecommunications equipment, and maintenance fees.

Applications for credits for Maintenance and Improvement of Rights of Way, Maintenance and Improvement of Qualified Rolling Stock, Eligible Expenditures, and Maintenance Fees are made in connection with the Annual Property Report, Forms 1027, 1028, and 1029.

The Commission expects taxpayers to timely file the required Annual Property Reports. Companies with annual gross receipts of less than $1,000,000 must file the Annual Property Report by March 15 while companies with annual gross receipts greater than $1,000,000 must file the Annual Property Report by March 31.

Filing deadlines for all state assessed annual reports and applicable credits are established by statute.

Staff will consider amendments to a current year Annual Property Report in order to address tax credits relating to maintenance and improvement of rights of way, maintenance and improvement of qualified rolling stock, eligible expenditures, and maintenance fees. so long as the amended return is received on or before May 31.

Following approval of the Final State Assessed Roll, requests to amend an Annual Property Report for the current tax year will be considered if received by July 31 so long as the original Annual Property Report was timely filed.

After July 31, staff will not consider or accept a request to amend an Annual Property Report for the current year to include previously unclaimed credits for maintenance and improvement of rights of way, maintenance and improvement of qualified rolling stock, eligible expenditures, and maintenance fees.

Adopted by the State Tax Commission February 11, 2020