HB-5206, As Passed House, November 8, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5206

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

(MCL 208.1 to 208.145) by adding section 35e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 35e. (1) A taxpayer that is a motion picture production

company that has spent $250,000.00 or more in this state for

purposes related to the filming or production of a single motion

picture may claim a credit against the tax imposed by this act

equal to the sum of the following:

     (a) 130% of the tax liability attributable to business

activity in this state beginning on and after July 1, 2005 that is

attributable to the filming or production of that motion picture.

     (b) The amount calculated under section 4cc of the general

sales tax act, 1933 PA 167, MCL 205.54cc.

     (c) The amount calculated under section 4z of the use tax act,

1937 PA 94, MCL 205.94z.

     (2) A taxpayer that is a motion picture production company

shall not include in business activity for purposes of determining

the credit under subsection (1)(a) business activity attributable

to the filming of a motion picture that depicts obscene matter or

an obscene performance.

     (3) If the credit allowed under this section for the tax year

and any unused carryforward of the credit allowed under this

section exceed the tax liability of the taxpayer for the tax year,

the excess shall not be refunded, but may be carried forward as an

offset to the tax liability in subsequent tax years for 10 tax

years or until the excess credit is used up, whichever occurs

first.

     (4) A taxpayer may assign all or a portion of the credit

allowed under this section. A credit assignment under this

subsection is irrevocable and shall be made in the tax year in

which business activity on which the credit is based occurs. A

taxpayer may claim a portion of the credit and assign a portion of

the remaining credit amount. If the taxpayer both claims and

assigns portions of the credit, the taxpayer shall claim the

portion it claims in the tax year in which the business activity

occurs. An assignee shall not subsequently assign a credit or any

portion of a credit assigned under this subsection. The credit

assignment under this subsection shall be made on a form prescribed

by the department. The taxpayer that assigns the credit shall send

a copy of the completed assignment form to the department in the

tax year in which the assignment is made. The assignee shall attach

a copy of the completed assignment form to its annual return

required under this act, for the tax year in which the assignment

is made and the assignee first claims a credit, which shall be the

same tax year.

     (5) This section applies only to the tax liability of a motion

picture production company attributable to the production of a

motion picture that begins on and after July 1, 2005.

     (6) As used in this section, "motion picture", "motion picture

production company", and "obscene matter or an obscene performance"

mean those terms as defined in section 35f.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 5204.

     (b) House Bill No. 5205.

     (c) House Bill No. 5207.

     (d) House Bill No. 5209.