Introduced
by
To repeal many of the “refundable” tax credits awarded under various selective tax break provisions in the Michigan Business Tax statute. These are a form of cash subsidy in which the amount that the credit exceeds a recipient’s tax liability is paid to the firm in cash. Many of the firms to which these are granted have little or no tax liability, and giving subsidies in this form enables the state to not disclose how much is paid out to them. The bill would also reduce the MBT surcharge from 22 percent to 18.72 percent on Oct. 1, 2010; raise the owner and manager compensation cap that is a condition of a firm being eligible for the lower small business MBT rate; and make other changes to the statute.
Referred to the Committee on Finance
