HB-6282, As Passed House, September 25, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6282

     A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

(MCL 208.1101 to 208.1601) by adding section 461.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 461. (1) For tax years that begin after December 31,

2008, a taxpayer may claim a credit against the tax imposed by this

act equal to the sum of 50% of the qualified expenses defined in

subsection (4)(e)(i) and (ii) and 100% of the qualified expenses

defined in subsection (4)(e)(iii) paid by the taxpayer in the tax

year in each of the following circumstances:

     (a) Except for apprentices trained under subdivision (b) or

(c), an amount not to exceed $2,000.00 for each apprentice trained

by the taxpayer in the tax year.

     (b) For companies that have a classification under the North

American industrial classification system (NAICS) of 333511,

333512, 333513, 333514, or 333515, an amount not to exceed

$4,000.00 for each apprentice trained by the taxpayer in the tax

year.

     (c) For companies that have a classification under the North

American industrial classification system (NAICS) of 333511,

333512, 333513, 333514, or 333515, an amount not to exceed

$1,000.00 for each special apprentice trained by the taxpayer in

the tax year.

     (2) If the credit allowed under this section exceeds the tax

liability of the taxpayer under this act for the tax year, that

portion of the credit that exceeds the tax liability shall be

refunded.

     (3) The credit allowed under this section shall be claimed on

the annual return required under section 505, or for a taxpayer

that is not required to file an annual return, the department shall

provide that the credit under this subsection may be claimed on the

C-8044 form, a successor form for persons not required to file an

annual return, or other simplified form prescribed by the

department.

     (4) As used in this section:

     (a) "Apprentice" means a person who is a resident of this

state, is 16 years of age or older but younger than 20 years of

age, has not obtained a high school diploma, is enrolled in high

school or a general education development (G.E.D.) test preparation

program, and is trained by a taxpayer through a program that meets

all of the following criteria:

     (i) The program is registered with the office of apprenticeship

in the United States department of labor.

     (ii) The program is provided pursuant to an apprenticeship

agreement signed by the taxpayer and the apprentice.

     (iii) The program is filed with a local workforce investment

board.

     (iv) The minimum term in hours for the program shall be not

less than 4,000 hours.

     (b) "Enrolled" means currently enrolled or expecting to enroll

after a period of less than 3 months during which the program is

not in operation and the apprentice is not enrolled.

     (c) "Local workforce investment board" means a board

established by the chief elected official of a local unit of

government pursuant to the workforce investment act of 1998, 29 USC

2801 to 2945, that has the responsibility to ensure that the

workforce needs of the employers in the geographic area governed by

the local unit of government are met.

     (d) "North American industrial classification system (NAICS)"

means the North American industrial classification system, 2002 as

produced by the United States office of management and budget.

     (e) "Qualified expenses" means all of the following expenses

paid by the taxpayer in a tax year for expenses used to calculate a

credit under subsection (1)(a) and for expenses used to calculate a

credit under subsection (1)(b) that were not paid for with funds

the taxpayer received or retained that the taxpayer would not

otherwise have received or retained and that are used for training

an apprentice:

     (i) Salary and wages paid to an apprentice.

     (ii) Fringe benefits and other payroll expenses paid for the

benefit of an apprentice.

     (iii) Costs of classroom instruction and related expenses

identified as costs for which the taxpayer is responsible under an

apprenticeship agreement, including but not limited to tuition,

fees, and books for college level courses taken while the

apprentice is enrolled in high school.

     (f) "Special apprentice" means a person who is not an

apprentice as defined by subdivision (a), is a resident of this

state, is 16 years of age or older but younger than 25 years of

age, and is trained by a taxpayer through a program that meets all

of the criteria under subdivision (a)(i) to (iv).