Advocacy News – March 25, 2021
This week, several tax bills saw action in both the Senate and the House. A summary of this action is as follows:
House Tax Policy Committee
- Immediate Expensing of Capital Assets (HB 4324) – Rep. Meerman’s bill would “re-couple” to federal bonus depreciation, which currently allows taxpayers to expense 100% of the cost of an asset purchased in the tax year it was acquired. The bill was reported on partisan lines.
The Michigan Chamber supports the bill and the Department of Treasury opposes based on revenue loss even though the revenue loss is purely a timing issue.
- First Time Home Buyers Account (HB 4289–90) – Reps. Damoose and Manoogian received bipartisan support on their legislation to create tax beneficial savings accounts to use for the down payment on a first time home purchase.
The Michigan Chamber supports the bills and the Department of Treasury opposes based on administrative burdens.
- Income Tax Filing Deadline (HB 4568, 4569, 4571) – A bipartisan package of bills sponsored by Reps. Yancey, Beeler and Hall passed unanimously out of committee to delay the state and city income tax deadline to May 17.
This comes shortly after the Department of Treasury issued a notice pushing the state income tax deadline back but did not affect city income tax deadlines.
The Michigan Chamber supports the bills as does the Department of Treasury.
Senate Finance Committee Meeting
- Audit Reform for Passthrough Businesses (SB 248) – Chairman Runestad’s bill to codify the Multistate Tax Commissions model legislation that addresses the reporting of federal audit changes, including the process by which partnerships report those adjustments to the Department of Treasury, passed unanimously.
The Michigan Chamber supports the bill; however, the Department of Treasury opposes, unless they are appropriated $2.8 million to implement the changes contained in the legislation.