SB-0361, As Passed Senate, September 28, 2010
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 361
(As amended September 23, 2010)
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 471.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 471. (1) For the [TAXPAYER'S FIRST TAX YEAR THAT BEGINS AFTER
DECEMBER 31, 2010] only, a taxpayer that is a
wholesale dealer, retail dealer, distributor, manufacturer, or
seller that had receipts from the sale of cigarettes or tobacco
products and paid the federal and state excise taxes on or for such
cigarettes or tobacco products under subtitle E of the internal
revenue code or other applicable state law during the 2008 and 2009
tax years may claim a credit against the tax imposed by this act
equal to the sum of the following:
(a) The difference between the taxpayer's modified gross
receipts tax liability for the 2008 tax year and the taxpayer's
modified gross receipts tax liability if the taxpayer had been
allowed to deduct 100% of the federal and state excise taxes on or
for such cigarettes or tobacco products under subtitle E of the
internal revenue code or other applicable state law under section
111(1)(aa)(ii) rather than 60%.
(b) The difference between the taxpayer's modified gross
receipts tax liability for the 2009 tax year and the taxpayer's
modified gross receipts tax liability if the taxpayer had been
allowed to deduct 100% of the federal and state excise taxes on or
for such cigarettes or tobacco products under subtitle E of the
internal revenue code or other applicable state law under section
111(1)(aa)(ii) rather than 75%.
(2) If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
excess shall be refunded.