Michigan businesses could claim tax credits for landfill waste fees

A qualified taxpayer may claim an income tax credit based on a comparison of specified landfill fees. A qualified taxpayer is a Michigan-based business subject to fees under the cited environmental law for TENORM, or technologically enhanced naturally occurring radioactive material. The taxpayer must be a Michigan-based business under the state procurement preference test and be subject to the specified fees. The calculation includes similar fees or surcharges paid for TENORM disposed of in a landfill after the amendatory act takes effect. The credit would apply to tax years beginning on or after January 1, 2027, if the bill takes effect.

A member of a qualifying flow-through entity may claim a share of its credit against the member’s tax. This applies to a qualified taxpayer who is a member of a flow-through entity that qualifies for the credit. The member’s share is based on the business income share reported by the entity, unless the department approves another method. Any credit above the member’s tax liability for the year must be refunded. The credit would apply to tax years beginning on or after January 1, 2027, if the bill takes effect.