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| C45. Under the MBT, does land qualify for the Investment Tax Credit ("ITC")? |
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No. Under MCL 208.1403(3), the only assets that qualify for an ITC are tangible assets, or mobile tangible assets, "of a type that are, or under the [IRC] will become, eligible for depreciation, amortization, or accelerated capital cost recovery for federal income tax purposes." The type of assets subject to depreciation are those assets defined as tangible property in Treas. Reg. 1.167(a)-2, which includes property such as buildings, machinery, trucks, and office furniture. However, it does not include intangible property, property subject to the federal income tax depletion allowance, or land apart from the improvements or physical development added to it.
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