SENATE BILL No. 1217

April 13, 2000, Introduced by Senators JAYE and YOUNG and referred to the Committee on Finance.

A bill to amend 1975 PA 228, entitled

"Single business tax act,"

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2 2000 AND BEFORE JANUARY 1, 2003, A TAXPAYER MAY CREDIT AGAINST

3 THE TAX IMPOSED BY THIS ACT THE FOLLOWING PERCENTAGE OF THE SALE

4 PRICE OF PRODUCTS SOLD BY THE TAXPAYER IN THE TAX YEAR THAT HAVE

5 A DOMESTIC CONTENT OF THE SPECIFIED AMOUNT:

6 (A) FOR PRODUCTS WITH DOMESTIC CONTENT OF AT LEAST 50% BUT

7 LESS THAN 60%, 3%.

8 (B) FOR PRODUCTS WITH DOMESTIC CONTENT OF AT LEAST 60% BUT

9 LESS THAN 70%, 3.5%.

10 (C) FOR PRODUCTS WITH DOMESTIC CONTENT OF AT LEAST 70% BUT

11 LESS THAN 80%, 4.0%.

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1 (D) FOR PRODUCTS WITH DOMESTIC CONTENT OF AT LEAST 80% BUT

2 LESS THAN 90%, 4.5%.

3 (E) FOR PRODUCTS WITH DOMESTIC CONTENT OF AT LEAST 90%,

4 5.0%.

5 (2) TO QUALIFY FOR THE CREDIT UNDER THIS SECTION, THE TAX-

6 PAYER SHALL ATTACH AN AFFIDAVIT TO THE ANNUAL RETURN REQUIRED TO

7 BE FILED UNDER THIS ACT ON WHICH THE CREDIT IS CLAIMED THAT

8 REPORTS THE DOMESTIC CONTENT PERCENTAGE OF THE PRODUCTS USED TO

9 CALCULATE THE CREDIT UNDER THIS SECTION.

10 (3) AS USED IN THIS SECTION, "DOMESTIC CONTENT" MEANS THOSE

11 COMPONENTS OF A FINISHED PRODUCT THAT ARE MANUFACTURED OR

12 PRODUCED IN THIS STATE.

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