Nationwide’s Bid to Share Michigan Tax Credits to Turn on Intent

Nationwide’s case over whether its different business entities can share tax credits as a single unit met some skepticism from the Michigan Supreme Court Wednesday as the justices delved into the state tax code’s meaning.

The two justices who posed questions during oral arguments focused on why the legislature specifically included language about “unitary business groups” in Chapters 11 and 13 of the Michigan tax code—which cover standard corporations and financial institutions—but omitted that term from Chapter 12—which covers insurance entities.

“Why would we ignore that distinction?” Justice Brian Zahra asked.

The Michigan Treasury Department is seeking to overturn a ...