SB-0599, As Passed House, March 21, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 599

     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) 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. 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. 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. 4733.

     (b) House Bill No. 4734.