SENATE BILL No. 419

 

 

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.