BUSINESS LOSS CARRY-FORWARD H.B. 4949:
FLOOR SUMMARY
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House Bill 4949 (as reported without amendment)
Sponsor: Representative Jud Gilbert, II
House Committee: Tax Policy
Senate Committee: Finance
CONTENT
The bill would amend Part 2 (Corporate Income Tax) of the Income Tax Act to delete language that limits the carry-forward of a business loss to 10 taxable years after the loss year (but retain language that limits the carry-forward to the year following the loss year and the next nine taxable years).
The Act allows a taxpayer to deduct from the Corporate Income Tax (CIT) any available business loss incurred after December 31, 2011. "Business loss" means a negative business income taxable amount after allocation or apportionment.
The business loss may be carried forward to the year immediately following the loss year as an offset to the allocated or apportioned CIT base, and then to the next nine taxable years after the loss year or until the loss is used up, whichever occurs first, but not for more than 10 taxable years after the loss year.
The bill would delete the language limiting the carry-forward to 10 taxable years after the loss year.
The bill would take effect on January 1, 2012.
MCL 206.623 Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 12-14-11 Fiscal Analyst: David Zin
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4949/1112