Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
Fi29. MCL 208.1457(9) calls for a credit application and redemption fee of 0.5% of a film and digital media infrastructure credit claimed. How is this fee charged? Is the fee paid in cash or via a reduction of the credit percentage of 25% to 24.5?
MCL 208.1457(9) provides in pertinent part that "[t]he amount of the [film and digital media infrastructure] credit…shall be reduced by a credit application and redemption fee equal to 0.5% of the credit claim, which shall be deducted from the credit otherwise payable to the taxpayer claiming the credit[.]" The Department interprets this to mean that the credit amount approved for an infrastructure project is reduced via an adjustment of 0.5% to arrive at a net credit amount of 24.5%. Therefore, the amount of the credit to be issued by the Film Office on a taxpayer's investment expenditure certificate and thus the net amount of the credit that a taxpayer may use to offset MBT tax liability will reflect a 0.5% reduction for the credit application and redemption fee. Moreover, if the infrastructure credit issued to a taxpayer is issued incrementally pursuant to MCL 208.1457(3)(g), as provided for in Film Infrastructure Investment Expenditure Certificate (MFO Form 005-2008), then each credit increment will reflect a reduction of the incremental amount approved by the 0.5% application and redemption fee.