February 14, 2008, Introduced by Senators ALLEN, KAHN, STAMAS, BARCIA and BIRKHOLZ and referred to the Committee on Commerce and Tourism.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 431a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 431a. (1) A qualified taxpayer may claim a credit against
the tax imposed by this act in an amount up to 100% of the
qualified supplier's or customer's payroll attributable to
employees who perform qualified new jobs as determined by the
Michigan economic growth authority, multiplied by the tax rate for
the tax year for a period of up to 10 years as determined by the
Michigan economic growth authority. If the credit allowed under
this subsection exceeds the liability of the taxpayer for the tax
year, the taxpayer may elect to have that portion that exceeds the
tax liability of the taxpayer refunded or to have the excess
carried forward to offset tax liability in subsequent years for 10
years or until it is used up, whichever occurs first. The Michigan
economic growth authority may not approve more than 5 new credits
in each calendar year under this subsection. If a qualified
taxpayer is awarded a credit under this subsection, any subsequent
credits awarded to that qualified taxpayer shall not be included in
determining the yearly limit of 5 new credits under this
subsection.
(2) A taxpayer shall not claim a credit under this section
unless the Michigan economic growth authority has issued a
certificate to the taxpayer. The taxpayer shall attach the
certificate to the annual return filed under this act on which the
credit under this section is claimed. The certificate required by
this subsection shall state all of the following:
(a) The taxpayer is a qualified taxpayer or qualified supplier
or customer, whichever is applicable.
(b) The amount of the credit under this section for the
qualified taxpayer or the qualified supplier or customer for the
designated tax year.
(c) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(3) A taxpayer that claims a credit under this section and
subsequently fails to meet the requirements of this section or any
other conditions included in an agreement entered into with the
Michigan economic growth authority in order to obtain a certificate
for which the credit was under this section may, as to be
determined by the Michigan economic growth authority, have its
credit reduced or terminated or have a percentage of the credit
amount previously claimed under this section added back to the tax
liability of the taxpayer in the year that the taxpayer fails to
comply with this section or the agreement.
(4) As used in this section:
(a) "Anchor company" means a qualified high-technology
business that is an integral part of a high-technology activity and
that has the authority or potential authority to dictate business
decisions and site location of qualified suppliers and customers.
(b) "Business", "full-time job", "qualified high-technology
activity", "qualified high-technology business", and "qualified new
job" mean those terms as defined in the Michigan economic growth
authority act, 1995 PA 24, MCL 207.801 to 207.810.
(c) "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.
(d) "Qualified supplier or customer" means a business that
opens a new location in this state, a business that relocates into
this state, or an existing business located in this state that
expands its business within the last year as a result of an anchor
company and satisfies each of the following:
(i) Has financial transactions with the anchor company.
(ii) Buys or sells a critical and unique component or
technology necessary for the anchor company to market a finished
product.
(e) "Qualified taxpayer" means a taxpayer that is an anchor
company that has brought a new qualified supplier or customer into
this state that created more than 10 full-time jobs and made an
investment of at least $1,000,000.00 as certified by the Michigan
economic growth authority.