News and Insights

Michigan Personal Property Tax Credit Expires December 31, 2011

Tax Development Dec 22, 2011

Since January 1, 2008, Michigan taxpayers have been able to claim credits against the Michigan Business Tax (MBT) for certain personal property taxes, including the industrial facilities tax, the obsolete property tax, and the tax on certain public utilities. The amount of the credit is dependent upon the type of personal property involved and is calculated as follows:

  • Industrial Personal Property - 35% of personal property taxes levied after 2007
  • Telephone Personal Property - 23% of personal property taxes paid in tax year 2008 and 13.5% of the tax paid in later years
  • Natural Gas Pipeline Property - 10% of personal property taxes levied after 2007

These credits will expire on December 31, 2011. To take advantage of these credits, a taxpayer must pay the personal property taxes on or before December 31, 2011. Taxpayers who pay the property taxes before January 1, 2012 may take the credits on their 2011 MBT, including filing certain documents along with their 2011 MBT return.