HOUSE BILL No. 5201

 

September 21, 2005, Introduced by Reps. Tobocman, Kathleen Law, Hopgood, Bieda, Clemente, Kolb, Lipsey, Murphy, Cheeks and Lemmons, III and referred to the Committee on Tax Policy.

 

     A bill to amend 1975 PA 228, entitled

 

"Single business tax act,"

 

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

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 35d. (1) For tax years beginning after December 31, 2005

 

and except as otherwise provided in this section, a qualified

 

taxpayer may claim a credit equal to 105% of the amount of

 

contributions made by the taxpayer in the tax year to the Michigan

 

housing and community development fund.

 

     (2) The department with the approval of the Michigan state

 

housing development authority shall determine the maximum credit

 

allowable under this section for each qualified taxpayer that makes

 

contributions to the Michigan housing and community development


 

fund in a tax year and issue each qualified taxpayer a certificate

 

of credit that indicates the maximum amount of credit the taxpayer

 

may claim.

 

     (3) Contributions used to calculate the qualified taxpayer's

 

allowable credit amount as determined under subsection (2) shall

 

not exceed 50% of the qualified taxpayer's tax liability for the

 

tax year.

 

     (4) The maximum amount of total credits allowable under this

 

section for each tax year is the amount calculated by multiplying

 

$3.00 times the population of this state as determined by the most

 

recent federal decennial census. The dollar amount under this

 

section shall be adjusted annually to reflect any increase in the

 

United States consumer price index for the immediately preceding

 

calendar year.

 

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

 

and any unused carryforward of the credit allowed by this section

 

exceed the taxpayer's tax liability for the tax year, that portion

 

that exceeds the tax liability for the tax year shall not be

 

refunded but may be carried forward to offset tax liability in

 

subsequent tax years for 10 years or until used up, whichever

 

occurs first.

 

     (6) As used in this section:

 

     (a) "Michigan housing and community development fund" means

 

the Michigan housing and community development fund created in the

 

Michigan housing and community development fund act.

 

     (b) "Qualified taxpayer" means a taxpayer that has received a

 

certificate of credit from the department that is approved by the


 

Michigan state housing development authority.

 

     (c) "United States consumer price index" means the United

 

States consumer price index for all urban consumers as defined and

 

reported by the United States department of labor, bureau of labor

 

statistics.