This bill amends the Michigan Insurance Code of 1956, specifically sections 476a and 476b, to update the requirements for domestic insurers and foreign insurers operating within the state. It introduces new provisions that require foreign insurers to make deposits and payments equivalent to those required of domestic insurers when they are subject to higher taxes or fees in their home states. The bill also clarifies that an insurer organized outside the United States is considered an alien or foreign insurer based on where its general deposit for policyholders is made. Additionally, it establishes that taxes collected under this section will now be governed by the income tax act of 1967, and it allows insurers to claim a credit against the tax for housing opportunity projects starting from tax years beginning on or after January 1, 2027.

Furthermore, the bill removes references to the former single business tax act and updates the language to reflect current tax laws applicable to authorized insurers. It emphasizes the importance of maintaining a competitive environment for domestic insurers by deterring excessive taxation from other states. The bill also includes provisions for the administration of these taxes by the state treasurer and outlines the conditions under which the confidentiality of tax return information may be waived. Overall, the amendments aim to streamline the regulatory framework for insurers while promoting fairness in taxation.

Statutes affected:
Substitute (H-1): 500.476
House Introduced Bill: 500.476