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SB 514

Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: SB 512'25

2025-2026 Regular Session Introduced by Joe Bellino and 12 co-sponsors

Michigan creates corporate income tax credit for beverage container distributors to incentivize returnable container handling, details contingent on companion legislation.

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS
#corporateincometax:credits #individualincometax:credit
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Bill Summary · SB 514

Legislative bill overview

SB 514 amends Michigan's corporate income tax law to create a new tax credit for distributors of returnable containers. The bill adds two new sections to the Michigan Tax Code (sections 279 and 679) to establish the mechanics and eligibility requirements for this credit, and is tied to companion legislation SB 512.

Why is this important

This tax credit could affect Michigan's beverage container deposit system and the businesses that handle returned containers. The credit structure will influence operational costs for distributors and potentially impact the state's circular economy efforts for beverage packaging, while also affecting corporate tax revenue.

Potential points of contention

  • Credit magnitude unclear: The bill text provided doesn't specify the credit amount or formula, making it impossible to assess the fiscal impact on state revenue or whether the incentive is proportionate
  • Distributor definition ambiguous: "Distributor" could encompass different business models in the beverage supply chain, creating questions about which entities qualify and potential competitive advantages
  • Tie-bar dependency: The credit's actual operation depends on SB 512, and without seeing that companion bill, the full policy intent and mechanics remain incomplete

Compiled from official sources — confirm details with the bill’s official record.

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