Mich. House Bill Seeks Tax Credit For Gyms, Eateries Amid Virus

Michigan would allow an income tax credit for some businesses that were ordered to close because of the novel coronavirus pandemic under a bill filed in the state House of Representatives.

H.B. 4372, which Rep. John Damoose, R-Harbor Springs, introduced Thursday, would allow some businesses with 300 or fewer employees to claim a tax credit if they reported a revenue loss of 25% or more in any 2020 quarter. Businesses that would qualify for the credit include restaurants, gyms, hotels and entertainment venues, according to the bill. The credit amount would be based on the distributive share of business income or a method for calculation that the state's Department of Revenue decides.

If enacted, the bill would apply retroactively to tax years beginning with 2020.

--Editing by Vincent Sherry. 

For a reprint of this article, please contact reprints@law360.com.