HB-5216, As Passed Senate, October 19, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5216

     A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 270 (MCL 206.270), as added by 2003 PA 295.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 270. (1) For tax years that begin after December 31,

2009 and before January 1, 2020, both of the following apply:

     (a) A taxpayer to whom a certificate and remaining credit

amount have been transferred under section 37e of the single

business tax act, 1975 PA 228, MCL 208.37e, may claim that credit

against the tax imposed by this act equal to the credit amount

transferred.

     (b) A claimant may claim a credit as provided in this section.

     (2) A credit claimed under this section shall only be claimed

in a tax year in which the credit under section 37e of the single

business tax act, 1975 PA 228, MCL 208.37e, is not allowed against

tax liability under the single business tax act, 1975 PA 228, MCL

208.1 to 208.145, or against a tax levied and imposed under a

successor tax to the single business tax act, 1975 PA 228, MCL

208.1 to 208.145.

     (3) A credit under this section shall be claimed  2008, a

taxpayer to whom a tax voucher certificate is issued or a taxpayer

that is the transferee of a tax voucher certificate may use the tax

voucher certificate to pay any liability of the taxpayer under

section 51 or to pay any amount owed by the taxpayer under section

351.

     (2) A tax voucher certificate shall be used for the purposes

allowed under subsection (1) and only in a tax year that begins

after December 31,  2009 and before January 1, 2020  2008.

     (4) The credit allowed for any tax year under subsection

(1)(a) shall not exceed the amount allowed on the certificate and

transferred and for the specified tax year. The credit allowed for

any tax year under subsection (1)(b) shall not exceed the amount

allowed on the claimant's certificate for the specified tax year.

     (5) If the taxpayer's or claimant's credit allowed under this

section for a tax year exceeds the taxpayer's or claimant's tax

liability for the tax year, that portion of the credit that exceeds

the tax liability for the tax year shall be refunded.

     (6) For credits claimed under subsection (1)(a), the

certificate transferred to the taxpayer and for credits claimed

under subsection (1)(b), the claimant's certificate, shall be

attached to the annual return under this act for the first tax year

in which a credit under this section or any portion of a credit

under this section is claimed.

     (7) For credits allowed under subsection (1)(b), for a

claimant that has no tax liability under this act for the tax year,

the amount of the claim under subsection (1)(b) shall be equal to

the remaining credit amount the claimant could have claimed under

section 37e of the single business tax act, 1975 PA 228, MCL

208.37e, had that section been in effect for the tax year.

     (8) The department shall prescribe the form for claiming the

credit under subsection (1)(b), which shall be a form separate and

distinct from all other forms under this act.

     (3) The amount of the tax voucher that may be used to pay a

liability due under this act in any tax year shall not exceed the

lesser of the following:

     (a) The amount of the tax voucher stated in the tax voucher

certificate held by the taxpayer.

     (b) The amount authorized to be used in the tax year under the

terms of the tax voucher certificate.

     (c) The taxpayer’s liability under this act for the tax year

for which the tax voucher is used.

     (4) If the amount of any tax voucher certificate held by a

taxpayer or transferee exceeds the amount the taxpayer may use

under subsection (3)(b) or (c) in a tax year, that excess may be

used by the taxpayer or transferee to pay, subject to the

limitations of subsection (3), any future liability of the taxpayer

or transferee under this act.

     (5) The tax voucher certificate, and any completed transfer

form that was issued pursuant to the Michigan early stage venture

investment act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263,

shall be attached to the annual return under this act. The

department may prescribe and implement alternative methods of

reporting and recording ownership, transfer, and utilization of tax

voucher certificates that are not inconsistent with the provisions

of this act. The department shall administer this section to assure

that any amount of a tax voucher certificate used to pay any

liability under this act shall not also be applied to pay any

liability of the taxpayer or any other person under the single

business tax act, 1975 PA 228, MCL 208.1 to 208.145. The department

shall take any action necessary to enforce and effectuate the

permissible issuance and use of tax voucher certificates in a

manner authorized under this section and the Michigan early stage

venture investment act of 2003, 2003 PA 296, MCL 125.2231 to

125.2263.

(6)  (9) As used in this section:

     (a) "Certificate" or "tax voucher certificate" means the tax

voucher certificate issued under section 23 of the Michigan early

stage venture capital investment act of 2003, 2003 PA 296, MCL

125.2253, or any replacement tax voucher certificate issued under

section 37e(9)(b) or (d) of the single business tax act, 1975 PA

228, MCL 208.37e.

     (b) "Claimant" means a person to whom a certificate has been

issued under section 23 of the Michigan early stage venture

investment act of 2003.

     (c) "Remaining credit amount" means the amount of credit

allowed under a certificate but not claimed under section 37e of

the single business tax act, 1975 PA 228, MCL 208.37e.

     (b) "Transferee" means a taxpayer to whom a tax voucher

certificate has been transferred under section 23 of the Michigan

early stage venture investment act of 2003, 2003 PA 296, MCL

125.2253, and section 37e of the single business tax act, 1975 PA

228, MCL 208.37e.