March 5, 2008, Introduced by Senators HUNTER, CLARKE, GILBERT and STAMAS and referred to the Committee on Commerce and Tourism.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 431 (MCL 208.1431).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
431. (1) For Except as
otherwise provided under this
subsection, for a period of time not to exceed 20 years as
determined by the Michigan economic growth authority, a taxpayer
that
is an authorized business or an eligible taxpayer may claim a
credit against the tax imposed by this act equal to the amount
certified each year by the Michigan economic growth authority as
follows:
(a) For an authorized business for the tax year, an amount not
to exceed the payroll and health care benefits of the authorized
business attributable to employees who perform qualified new jobs
as determined under the Michigan economic growth authority act,
1995 PA 24, MCL 207.801 to 207.810, multiplied by the tax rate.
(b) For an eligible business as determined under section
8(5)(a) of the Michigan economic growth authority act, 1995 PA 24,
MCL 207.808, an amount not to exceed 50% of the payroll and health
care
benefits of the eligible taxpayer authorized business
attributable to employees who perform retained jobs as determined
under the Michigan economic growth authority act, 1995 PA 24, MCL
207.801 to 207.810, multiplied by the tax rate for the tax year.
(c) For an eligible business as determined under section
8(5)(b) of the Michigan economic growth authority act, 1995 PA 24,
MCL 207.808, an amount not to exceed the payroll and health care
benefits
of the eligible taxpayer authorized business attributable
to employees who perform retained jobs as determined under the
Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to
207.810, multiplied by the tax rate for the tax year.
(d) For a period of time not to exceed 7 years as determined
by the Michigan economic growth authority, for a qualified high-
technology business for each of the first 3 tax years of the
credit, an amount not to exceed 200% of the payroll and health care
benefits of the high-technology business attributable to employees
who perform qualified new jobs as determined under the Michigan
economic growth authority act, 1995 PA 24, MCL 207.801 to 207.810,
multiplied by the tax rate and, for each of the remaining tax years
of the credit, an amount not to exceed 100% of the payroll and
health care benefits of the high-technology business attributable
to employees who perform qualified new jobs as determined under the
Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to
207.810, multiplied by the tax rate.
(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 a
credit under this section is claimed.
(3) The certificate required by subsection (2) shall state all
of the following:
(a)
The taxpayer is an authorized business. or an eligible
taxpayer.
(b) The amount of the credit under this section for the
authorized
business or eligible taxpayer for the designated tax
year.
(c) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(4) The Michigan economic growth authority may certify a
credit under this section based on an agreement entered into prior
to January 1, 2008 pursuant to section 37c of former 1975 PA 228.
The number of years for which the credit may be claimed under this
section shall equal the maximum number of years designated in the
resolution reduced by the number of years for which a credit has
been claimed or could have been claimed under section 37c of former
1975 PA 228.
(5) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability of the taxpayer shall be
refunded.
(6)
A Except as otherwise
provided under this subsection, a
taxpayer that claims a credit under subsection (1) or section 37c
or 37d of former 1975 PA 228, that has an agreement with the
Michigan economic growth authority based on qualified new jobs as
defined in section 3(n)(ii) of the Michigan economic growth
authority act, 1995 PA 24, MCL 207.803, and that removes from this
state 51% or more of those qualified new jobs within 3 years after
the first year in which the taxpayer claims a credit described in
this subsection shall pay to the department no later than 12 months
after those qualified new jobs are removed from the state an amount
equal to the total of all credits described in this subsection that
were claimed by the taxpayer. Beginning January 1, 2008, a taxpayer
that claims a credit under subsection (1) or section 37c or 37d of
former 1975 PA 228, 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 the credit claimed under this section
or removes any of the qualified new jobs from this state during the
term of the written agreement and for a period of years after the
term of the written agreement, as determined by the Michigan
economic growth authority, may 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 tax year that the taxpayer fails to comply with
this section or the agreement.
(7) If the Michigan economic growth authority or a designee of
the Michigan economic growth authority requests that a taxpayer
that claims the credit under this section get a statement prepared
by a certified public accountant verifying that the actual number
of new jobs created is the same number of new jobs used to
calculate the credit under this section, the taxpayer shall get the
statement and attach that statement to its annual return under this
act on which the credit under this section is claimed.
(8) A credit shall not be claimed by a taxpayer under this
section if the taxpayer's initial certification as required in
subsection (3) is issued after December 31, 2013.
(9) For purposes of this section, taxpayer includes a person
subject to the tax imposed under chapters 2A and 2B.
(10) As used in this section:
(a) "Authorized business", "facility", "full-time job",
"qualified high-technology business", and "written agreement" mean
those terms as defined in the Michigan economic growth authority
act, 1995 PA 24, MCL 207.801 to 207.810.
(b)
"Eligible taxpayer" means an authorized business that
meets
the criteria under section 8(5) of the Michigan economic
growth
authority act, 1995 PA 24, MCL 207.808.
(b) "Health care benefits" means all costs paid for a self-
funded health care benefit plan or for an expense-incurred
hospital, medical, or surgical policy or certificate, nonprofit
health care corporation certificate, or health maintenance
organization contract. Health care benefit does not include
accident-only, credit, dental, or disability income insurance;
long-term care insurance; coverage issued as a supplement to
liability insurance; coverage only for a specified disease or
illness; worker's compensation or similar insurance; or automobile
medical payment insurance.
(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) "Payroll" means the total salaries and wages before
deducting any personal or dependency exemptions.
(e) "Qualified new jobs" means 1 or more of the following:
(i) The average number of full-time jobs at a facility of an
authorized business for a tax year in excess of the average number
of full-time jobs the authorized business maintained in this state
prior to the expansion or location as that is determined under the
Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to
207.810.
(ii) The average number of full-time jobs at a facility created
by
an eligible business within 120 up
to 90 days before becoming an
authorized business that is in excess of the average number of
full-time
jobs that the business maintained in this state 120 60
days before becoming an authorized business, as determined under
the Michigan economic growth authority act, 1995 PA 24, MCL 207.801
to 207.810.
(f)
"Tax rate" means the rate imposed under section 51e 51 of
the
income tax act of 1967, 1967 PA 281, MCL 206.51e 206.51,
for
the tax year in which the tax year of the taxpayer for which the
credit is being computed begins.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No. 1115.
(b) Senate Bill No. 1187.
(c) Senate Bill No. 1188.
(d) Senate Bill No. 1189.