HOUSE BILL No. 6048


     September 16, 1998, Introduced by Rep. Profit and referred to the Committee on Tax Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 39c.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 39C.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

 2    1998, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

 3    THIS ACT EQUAL TO THE INFRASTRUCTURE COSTS PAID BY THE TAXPAYER

 4    TO A LOCAL GOVERNMENTAL UNIT IN THE TAX YEAR.

 5         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

 6    YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY THIS

 7    SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR,

 8    THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

 9    SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET TAX

10    LIABILITY IN SUBSEQUENT TAX YEARS FOR 10 YEARS OR UNTIL USED UP,

11    WHICHEVER OCCURS FIRST.


   06387'98                                                 RJA
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 1         (3) AS USED IN THIS SECTION, "INFRASTRUCTURE COSTS" MEANS

 2    COSTS INCURRED BY A LOCAL GOVERNMENTAL UNIT FOR INFRASTRUCTURE

 3    AND IMPROVEMENTS, AS DETERMINED BY THE LOCAL UNIT OF GOVERNMENT,

 4    MADE TO OR FOR THE BENEFIT OF PROPERTY OWNED AND DEVELOPED BY THE

 5    TAXPAYER AND REIMBURSED TO THE LOCAL GOVERNMENTAL UNIT BY THE

 6    TAXPAYER.












































   06387'98          Final page.                            RJA