This bill amends the Income Tax Act of 1967 by introducing new definitions and provisions related to "certificated credits" and their application for taxpayers. Specifically, it defines "certificated credit" as a credit for which a preapproval letter was issued to a qualified taxpayer under specific sections of the former 2007 PA 36 before January 1, 2012, and outlines the conditions under which these credits can be claimed. The bill establishes that taxpayers with certificated credits can claim the remaining amount against their tax liability for tax years beginning on or after January 1, 2026, and mandates that these credits be claimed in equal installments over ten years. Additionally, it stipulates that taxpayers must maintain at least 95% of their full-time jobs as of September 30, 2025, to remain eligible for the credit.

Furthermore, the bill repeals the Michigan Business Tax Act, effective for tax years beginning after December 31, 2025, and makes several adjustments to the language regarding the election to pay taxes under the former 2007 PA 36 instead of the current tax provisions. It clarifies that taxpayers with certificated credits may elect to file returns under the former act and outlines the conditions for such elections. The bill also includes provisions for taxpayers who acquire certificated credits through modifications of existing agreements, ensuring they can opt for the former tax structure under certain conditions. Overall, the bill aims to streamline the process for claiming tax credits while ensuring job retention in the state.

Statutes affected:
House Introduced Bill: 206.605, 206.680, 208.1101, 208.1519