MBT CREDIT FOR CERTAIN REAL ESTATE ENTITIES

House Bill 4740

Sponsor:  Rep. Tim Melton

Committee:  Tax Policy

Complete to 11-3-09

A SUMMARY OF HOUSE BILL 4740 AS INTRODUCED 3-31-09

The bill would amend the Michigan Business Tax Act to create a credit equal to 100 percent of a firm's total tax liability attributable to a "qualified real estate entity."  This would apply beginning with the 2009 tax year.

The credit would be available for a real estate entity that is owned by fewer than six individuals, that generates income exclusively from the management, operation, or sale of "qualified real estate," and that has less than $10,000 in business income from working capital that is related to the management, operation, or sale of qualified real estate.  "Qualified real estate" would be defined to mean real estate that is located outside of Michigan and that is acquired prior to the bill's effective date. 

MCL 208.1436

FISCAL IMPACT:

A fiscal analysis is in process.

                                                                                           Legislative Analyst:   Chris Couch             

                                                                                                  Fiscal Analyst:   Rebecca Ross          

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.