SB-0944, As Passed House, December 13, 2007

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 944

     A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

(MCL 208.1101 to 208.1601) by adding section 450.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 450. (1) Subject to section 450a, for tax years that

begin on or after January 1, 2008 and end before January 1, 2016, a

taxpayer that is engaged in research and development of a qualified

technology may claim a credit against the tax imposed by this act

equal to 3.9% of the compensation as defined in section 107 for

services performed in a qualified facility, paid to the employees

at the qualified facility in the tax year, if the taxpayer has

entered into an agreement before April 1, 2007 with the Michigan

economic growth authority that provides all of the following:

     (a) The type and number of jobs at the qualified facility to

which the agreement applies.

     (b) The type of work to be performed by the employees

performing the jobs provided under subdivision (a) by the taxpayer.

     (c) Any other terms and conditions that the Michigan economic

growth authority considers to be in the public interest.

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

liability of the taxpayer for the tax year, that portion that

exceeds the tax liability shall be refundable.

     (3) The maximum amount of the credit allowed under this

section that any 1 taxpayer may claim shall not exceed

$2,000,000.00 in a single tax year.

     (4) As used in this section:

     (a) "Michigan economic growth authority" means the Michigan

economic growth authority created in the Michigan economic growth

authority act, 1995 PA 24, MCL 207.801 to 207.810.

     (b) "Motor vehicle" means a motor vehicle as defined in

section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33,

that is designed as a passenger vehicle, or sport utility vehicle,

but does not include a motor home, bus, truck other than a pickup

truck or van, or a vehicle designed to travel on less than 4

wheels.

     (c) "Qualified city" means a city that meets both of the

following criteria:

     (i) Has a population of not less than 80,000 and not more than

82,000 as designated by the United States bureau of the census in

the 2000 census.

     (ii) Is located in a county that has a population of not less

than 1,000,000 and not more than 1,300,000 as designated by the

United States bureau of the census in the 2000 census.

     (d) "Qualified facility" means a leased facility in a

qualified city used for the research and development of a qualified

technology.

     (e) "Qualified technology" means a hybrid system the primary

purpose of which is the propulsion of a motor vehicle.

     (f) "Research and development" means "qualified research" as

that term is defined in section 41(d) of the internal revenue code.

     Enacting section 1. This amendatory act takes effect January

1, 2008.