Bill > HB4825

This bill establishes a new tax credit for beverage distributors who originate deposits on returnable containers, providing a credit of $0.005 per returnable container sold during tax years beginning on or after January 1, 2026. The credit will be annually adjusted based on the United States Consumer Price Index (CPI), which measures changes in the prices paid by urban consumers for goods and services. To claim the credit, distributors must attach a specific report to their annual tax return, and if the credit exceeds their tax liability, the excess amount will be refunded. The bill defines key terms such as "beverage container," "distributor," and "returnable container" by referencing existing legislation, and clarifies that for pass-through entities like partnerships, limited liability companies, and S corporations, the credit can be claimed by partners, members, or shareholders based on their proportionate ownership or an alternative method approved by the department. The bill is tied to another legislative bill and will only take effect if that companion bill is also enacted into law.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4825