Bill > SB0514

This bill establishes a tax credit for distributors of returnable beverage containers, starting from the 2026 tax year. Specifically, distributors who originate a deposit on a beverage container can claim a credit of $0.005 per returnable container sold during the tax year. Beginning in 2027, this credit amount will be annually adjusted based on the percentage increase in the United States Consumer Price Index. To claim the credit, taxpayers must attach a specific report to their annual tax return. If the credit exceeds the taxpayer's tax liability for the year, the excess amount will be refunded. The bill defines key terms such as "beverage container", "distributor", and "returnable container" by referencing existing state law, and clarifies that for pass-through entities like partnerships and S corporations, the credit can be claimed proportionally by partners, members, or shareholders. The bill is tied to another legislative bill (Senate Bill 512) and will only take effect if that companion bill is also enacted into law.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0514