SB-0361, As Passed House, September 23, 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.