September 22, 2005, Introduced by Reps. David Law, Pavlov, Baxter and Huizenga and referred to the Committee on Commerce.
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 exceeds the amount the taxpayer may use under subsection
(3)(b) or (c) in a tax year, the excess may be used by the taxpayer
to pay, subject to the limitations of subsection (3), any future
liability of the taxpayer under this act or, if and to the extent
of the amount transferred, any future liability under this act of
any other taxpayer to which the tax voucher certificate is
transferred pursuant to the Michigan early stage venture investment
act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263, and the single
business tax act, 1975 PA 228, MCL 208.1 to 208.145.
(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. 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
may 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" "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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5215(request no.
04152'05) of the 93rd Legislature is enacted into law.