The bill amends the Michigan Business Tax Act by updating several sections, including definitions and provisions related to tax credits and gross receipts. It introduces a revised definition of "certificated credit," specifying the types of tax credits and vouchers available to taxpayers with agreements made before January 1, 2012, and clarifies that these credits must not have been fully claimed prior to this date. Additionally, the definition of "gross receipts" is expanded to include a detailed list of exclusions, such as proceeds from capital asset sales and certain types of income. The bill also replaces outdated references, such as the "Michigan early stage venture investment act of 2003," with "former 2003 PA 296," and updates language regarding compensation and payments to align with federal tax codes.

Furthermore, the bill introduces new provisions for tax credits related to rehabilitation projects, including a 25% credit for qualified expenditures, and allows taxpayers to forgo the carryover period for a refund of 90% of excess credits. It establishes criteria for additional credits for high community impact rehabilitation plans and introduces a tax credit for service station owners converting to E85 fuel or biodiesel blends. The bill also clarifies definitions related to biodiesel and E85 fuel, ensuring compliance with federal standards, and removes references to the Michigan Strategic Fund. Overall, the amendments aim to streamline tax processes, enhance the regulatory framework for renewable energy, and ensure that definitions and regulations are current and clear.

Statutes affected:
Senate Introduced Bill: 208.1107