April 29, 2003, Introduced by Senator EMERSON and referred to the Committee on Finance.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding sections 79 and 79a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 79. A taxpayer that files a consolidated or combined
2 return under this act shall not claim a credit carryforward or
3 loss carryforward from a year in which the member from whom the
4 credit carryforward or loss carryforward originated did not file
5 a return on a consolidated or combined basis in an amount greater
6 than the total credit carryforward or loss carryforward that
7 could have been claimed by that member for the same taxable
8 period if that member had filed a separate return.
9 Sec. 79a. For tax years that begin on and after January 1,
10 2003, a taxpayer that files a return under this act that includes
11 a disregarded entity under an election pursuant to 26
1 C.F.R. 301.7701-1 to 301.7701-3 or section 1361(b)(3) of the
2 internal revenue code shall not claim on that return a credit
3 carryforward or loss carryforward from a year in which the entity
4 from whom the credit carryforward or loss carryforward originated
5 did not file a return on a disregarded entity basis in an amount
6 greater than the total credit carryforward or loss carryforward
7 that could have been claimed by that entity if that entity had
8 filed a separate return.
9 Enacting section 1. This amendatory act is intended to
10 clarify the way in which a credit carryforward or loss
11 carryforward was intended to be treated by taxpayers that file
12 consolidated or combined annual returns under this act.