Corporate Tax Base 15. Will negative business income - or business losses - from 2011 be allowed as a deduction on the CIT return for 2012?
No. The CIT is imposed on the corporate income tax base, after allocation or apportionment at the rate of 6.0%. The corporate income tax base means a taxpayer's business income subject to certain statutory adjustments, before allocation or apportionment. One such adjustment is for any available business loss incurred after December 31, 2011. "Business loss" means a negative business income taxable amount after allocation or apportionment. The CIT does not permit a carryforward of a business loss incurred prior to January 1, 2012. In other words, MBT business losses may not be used under the CIT.