HB-6070, As Passed House, May 30, 2006
May 17, 2006, Introduced by Reps. Huizenga, Elsenheimer and Tobocman and referred to the Committee on Commerce.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding section 35e; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35e. (1) For projects approved under section 38g for
which a certificate of completion is issued on and after January 1,
2006, a qualified taxpayer may assign all or a portion of a credit
allowed under section 38g(2), (3), or (33) under this section. A
credit assignment under this subsection is irrevocable and, except
for a credit assignment based on a multiphase project, shall be
made in the tax year in which a certificate of completion is issued
unless the assignee is an unknown lessee. If a qualified taxpayer
wishes to assign all or a portion of its credit to a lessee but the
lessee is unknown in the tax year in which the certificate of
completion is issued, the qualified taxpayer may delay claiming and
assigning the credit until the first tax year in which the lessee
is known. A qualified taxpayer may claim a portion of a credit and
assign the remaining credit amount. If the qualified taxpayer both
claims and assigns portions of the credit, the qualified taxpayer
shall claim the portion it claims in the tax year in which a
certificate of completion is issued pursuant to section 38g. An
assignee may subsequently assign a credit or any portion of a
credit assigned under this section to 1 or more assignees. An
assignment under this section of a credit allowed under section
38g(2), (3), or (33) shall not be made after 10 years after the
first tax year in which that credit under section 38g(2), (3), or
(33) may be claimed. The credit assignment or a subsequent
reassignment under this section shall be made on a form prescribed
by the Michigan economic growth authority. The qualified taxpayer
shall send a copy of the completed assignment form to the Michigan
economic growth authority in the tax year in which an assignment or
reassignment is made. An assignee or subsequent reassignee 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
or reassignment is made and the assignee or reassignee first claims
a credit, which shall be the same tax year. A credit assignment
based on a credit for a component of a multiphase project that is
completed before January 1, 2006 shall be made under section
38g(18). A credit assignment based on a credit for a component of a
multiphase project that is completed on or after January 1, 2006
may be made under this section. In addition to all other procedures
and requirements under this section, the following apply if the
total of all credits for a project is more than $10,000,000.00 but
$30,000,000.00 or less:
(a) The credit shall be assigned based on the schedule
contained in the certificate of completion.
(b) If the qualified taxpayer assigns all or a portion of the
credit amount, the qualified taxpayer shall assign the annual
credit amount for each tax year separately.
(c) More than 1 annual credit amount may be assigned to any 1
assignee and the qualified taxpayer may assign all or a portion of
each annual credit amount to any assignee.
(2) As used in this section, "multiphase project", "project",
and "qualified taxpayer" mean those terms as defined in section
38g.
Enacting section 1. Section 35e as added to the single
business tax act, 1975 PA 228, by 2006 PA 113, is repealed.
Enacting section 2. This amendatory act is intended to be
retroactive and effective January 1, 2006.