It’s official. Gov. Granholm signed the MITA Materials Deduction Fix legislation into law. The bill was approved unanimously by both houses of the Legislature and is now Public Act 177 of 2008.
MITA began working on the legislation (SB 1217) after it became evident that bureaucrats within the Department of Treasury were not allowing the deduction that had been written into the original law. As such, construction materials like steel, asphalt and other items were required to be included into a company’s gross receipts for the purposes of calculating their MBT liability.
Under Public Act 177, the tax deduction is retroactive from January 1, 2008, allowing construction companies who paid the quarterly spike to get a credit for the first quarter overpayment.
The MITA MBT fix was a major accomplishment because it had significant tax ramifications for the construction industry and it was the only MBT fix allowed this year by the Legislature.
If you have any questions please contact Mike Nystrom, Vice President of Government and Public Relations at mikenystrom@mi-ita.com; or Keith Ledbetter, Director of Legislative Affairs at keithledbetter@mi-ita.com; or by calling the MITA office at (517) 347-8336.
