Nationwide Insurance Unit Loses Bid for Michigan Tax Credits

Nationwide Agribusiness Insurance Co. and affiliated businesses can’t group together for premium and retaliatory taxes to take advantage of certain tax credits, the Michigan Tax Tribunal ruled.

Divisions of an insurance company may file as a unitary business group for corporate income tax purposes but not for taxes specific to the insurance industry, the tribunal ruled in an opinion released Wednesday. As a result, the Nationwide unit is on the hook for over $146,000 in taxes, interest, and penalties.

The tribunal acknowledged that the companies satisfy the elements of a unified business group because Nationwide Mutual Insurance Co. controls more ...