2018 Senate Bill 1170

Revise “flow through entities” income tax details

Introduced in the Senate

Nov. 8, 2018

Introduced by Sen. Dave Hildenbrand (R-29)

To authorize an alternative method that businesses defined as “flow through entities” can use to calculate their Michigan income tax liability, so as to mitigate the loss of certain federal credits and deductions changed by the 2017 federal tax cut and reform law.

Referred to the Committee on Finance

Nov. 28, 2018

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Nov. 29, 2018

Amendment offered

To allocate a slightly larger share of the revenue from this tax to the state school aid fund.

The amendment passed by voice vote

Amendment offered by Sen. Jim Ananich (D-27)

To make unemployment insurance benefits deductible from state income tax.

The amendment failed 17 to 20 (details)

Passed in the Senate 37 to 0 (details)

Received in the House

Nov. 29, 2018

Referred to the Committee on Tax Policy

Dec. 4, 2018

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 18, 2018

Substitute offered by Rep. Jim Tedder (R-43)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Passed in the House 64 to 45 (details)

To authorize an alternative method that businesses defined as “flow through entities” can use to calculate their Michigan income tax liability, so as to mitigate the loss of certain federal credits and deductions changed by the 2017 federal tax cut and reform law.

Received in the Senate

Dec. 19, 2018

Passed in the Senate 38 to 0 (details)

To concur with the House-passed version of the bill.

Vetoed by Gov. Rick Snyder

Dec. 28, 2018