HOUSE BILL No. 4849


     May 30, 2001, Introduced by Reps. Kilpatrick, Mortimer, Bishop and Woronchak 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 22g.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 22G.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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      2000, AN INSURANCE COMPANY THAT IS A CERTIFIED INVESTOR THAT IS

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      NOT SUBJECT TO SECTION 476A OF THE INSURANCE CODE OF 1956, 1956

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      PA 218, MCL 500.476A, MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED

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      BY THIS ACT EQUAL TO THE AMOUNT OF CERTIFIED CAPITAL CONTRIBUTED

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      TO A CERTIFIED CAPITAL COMPANY PURSUANT TO THE CERTIFIED CAPITAL

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      COMPANY ACT.

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           (2) BEGINNING WITH THE TAX YEAR IN WHICH AN INITIAL INVEST-

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      MENT UNDER THE CERTIFIED CAPITAL COMPANY ACT IS MADE AND EACH TAX

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      YEAR AFTER THAT YEAR, A TAXPAYER THAT CLAIMS A CREDIT UNDER THIS




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      SECTION SHALL CLAIM A MAXIMUM OF 10% OF THE TOTAL AMOUNT OF

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      CERTIFIED CAPITAL CONTRIBUTED.

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           (3) THE CREDIT CLAIMED UNDER THIS SECTION FOR A TAX YEAR

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      SHALL NOT EXCEED THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX

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      YEAR.

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           (4) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

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      YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY THIS

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

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      THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

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

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      LIABILITY IN SUBSEQUENT TAX YEARS UNTIL USED UP.

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           (5) THE CREDITS ALLOWED UNDER THIS SECTION SHALL COMPLY WITH

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      THE TAX CREDIT ALLOCATION CLAIM PROVISIONS OF THE CERTIFIED CAPI-

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      TAL COMPANY ACT.

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           (6) AS USED IN THIS SECTION, "CERTIFIED CAPITAL", "CERTIFIED

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      CAPITAL COMPANY", "CERTIFIED INVESTOR", AND "TAX CREDIT ALLOCA-

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      TION CLAIM" MEAN THOSE TERMS AS DEFINED IN THE CERTIFIED CAPITAL

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      COMPANY ACT.

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           Enacting section 1.  This amendatory act does not take

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      effect unless Senate Bill No. _____ or House Bill No. 4850

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      (request no. 00130'01 *) of the 91st Legislature is enacted into

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      law.













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