Section R. 206.7 - Add back of taxes on or measured by incomeRule 7.
(1) Taxes on or measured by income deducted in computing federal adjusted gross income shall be added back to federal adjusted gross income to determine the income subject to Michigan income tax.(2) An individual who receives distributive income from partnerships, joint ventures, and subchapter S corporations is required to make the adjustment in subrule (1) if the partnership, joint venture, or subchapter S corporation paid city or state income tax on its distributive income and did not add back such taxes to the amounts distributed to the partners or shareholders.Mich. Admin. Code R. 206.7