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Credits 18. If a taxpayer electing to file under the MBT calculates a negative MBT liability and a CIT of zero under MCL 208.1500(4), is the taxpayer required to file MBT even when CIT is mathematically a higher amount?
Yes. MCL 208.1500(4) states that "a taxpayer's tax liability under [the MBT] shall be the greater of (1) the determined MBT liability after application of all credits, deductions, and exemptions and any unused credit carryforwards, or (2) the determined CIT liability after all credits, deductions, and exemptions under the CIT, less the amount of the certificated credits, including unused certificated credit carryforwards, the taxpayer was allowed to claim under the MBT."
The taxpayer would still file under the MBT, but the taxpayer's determined MBT tax liability for the tax year would be that calculated as the CIT tax liability of zero, since the CIT liability of zero is greater than the MBT determined amount. The taxpayer is still filing under the MBT Act with an MBT return and its MBT liability would be zero.