MICHIGAN BUSINESS TAX ACT (EXCERPT)
Act 36 of 2007
***** 208.1109 THIS SECTION IS REPEALED BY ACT 90 OF 2019 EFFECTIVE FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 2031 *****
208.1109 Definitions; E and F.Sec. 109.
(1) "Employee" means an employee as defined in section 3401(c) of the internal revenue code. A person from whom an employer is required to withhold for federal income tax purposes is prima facie considered an employee.
(2) "Employer" means an employer as defined in section 3401(d) of the internal revenue code. A person required to withhold for federal income tax purposes is prima facie considered an employer.
(3) "Federal taxable income" means taxable income as defined in section 63 of the internal revenue code, except that federal taxable income shall be calculated as if section 168(k) and section 199 of the internal revenue code were not in effect.
(4) "Financial institution" means that term as defined under chapter 2B.
(5) "Foreign operating entity" means a United States person that satisfies each of the following:
(a) Would otherwise be a part of a unitary business group that has at least 1 person included in the unitary business group that is taxable in this state.
(b) Has substantial operations outside the United States, the District of Columbia, any territory or possession of the United States except for the commonwealth of Puerto Rico, or a political subdivision of any of the foregoing.
(c) At least 80% of its income is active foreign business income as defined in section 861(c)(1)(B) of the internal revenue code.
History: 2007, Act 36, Eff. Jan. 1, 2008
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Am. 2008, Act 434, Eff. Jan. 1, 2008
Compiler's Notes: Enacting section 1 of Act 36 of 2007 provides:"Enacting section 1. This act takes effect January 1, 2008 and applies to all business activity occurring after December 31, 2007."Enacting section 1 of Act 434 of 2008 provides:"Enacting section 1. This amendatory act is retroactive and is effective January 1, 2008."Enacting section 1 of Act 39 of 2011 provides:"Enacting section 1. The Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, is repealed effective on the date that the secretary of state receives a written notice from the department of treasury that the last certificated credit or any carryforward from that certificated credit has been claimed."
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