SENATE BILL No. 516

May 30, 2001, Introduced by Senators KOIVISTO, NORTH, DINGELL, MC MANUS,

GOSCHKA, PETERS, BYRUM, BULLARD and MILLER 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, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

3 THIS ACT EQUAL TO $1.00 PER LONG TON OF QUALIFIED LOW-GRADE HEMA-

4 TITE CONSUMED IN AN INDUSTRIAL OR MANUFACTURING PROCESS THAT IS

5 THE BUSINESS ACTIVITY OF THE TAXPAYER.

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

7 YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED UNDER THIS

8 SECTION EXCEED THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX

9 YEAR, THE EXCESS SHALL NOT BE REFUNDED, BUT MAY BE CARRIED

10 FORWARD AS AN OFFSET TO THE TAX LIABILITY IN SUBSEQUENT TAX YEARS

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1 FOR 5 TAX YEARS OR UNTIL THE EXCESS CREDIT IS USED UP, WHICHEVER

2 OCCURS FIRST.

3 (3) THE CREDIT UNDER THIS SECTION SHALL BE BASED ON HEMATITE

4 CONSUMED ON AND AFTER JANUARY 1, 2000.

5 (4) AS USED IN THIS SECTION:

6 (A) "CONSUMED IN AN INDUSTRIAL OR MANUFACTURING PROCESS"

7 MEANS A PROCESS IN WHICH LOW-GRADE HEMATITE IS USED AS A RAW

8 MATERIAL IN THE PRODUCTION OF PIG IRON OR STEEL.

9 (B) "LOW-GRADE HEMATITE" MEANS ANY HEMATITIC IRON FORMATION

10 THAT IS NOT OF SUFFICIENT QUALITY IN ITS ORIGINAL MINERAL STATE

11 TO BE MINED AND SHIPPED FOR THE PRODUCTION OF PIG IRON OR STEEL

12 WITHOUT FIRST BEING DRILLED, BLASTED, CRUSHED, AND GROUND VERY

13 FINE TO LIBERATE THE IRON MINERALS AND FOR WHICH ADDITIONAL BENE-

14 FICIATION AND AGGLOMERATION ARE REQUIRED TO PRODUCE A PRODUCT OF

15 SUFFICIENT QUALITY TO BE USED IN THE PRODUCTION OF PIG IRON OR

16 STEEL.

17 (C) "QUALIFIED LOW-GRADE HEMATITE" MEANS HEMATITIC IRON ORE

18 MINED IN THE UNITED STATES.

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