December 2, 2008, Introduced by Senator BROWN and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 278.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 278. (1) A qualified taxpayer that has a preapproval
letter issued after December 31, 2008 and before January 1, 2013
may claim a credit that has been approved under this section
against the tax imposed by this act equal to either of the
following:
(a) If the Michigan department of agriculture determines that
the qualified taxpayer's beef or dairy farm is located in a county
within a modified accredited zone that as of December 31, 2007 has
more than 10 free-ranging cervids that have tested positive for
bovine tuberculosis since January 1, 1995, 100% of the qualified
taxpayer's investment paid or accrued by the qualified taxpayer on
projects completed in accordance with the qualified taxpayer's
wildlife risk mitigation action plan provided that the investments
do not exceed the amount stated in the preapproval letter.
(b) If the Michigan department of agriculture determines that
the qualified taxpayer's beef or dairy farm is located in a
modified accredited zone other than within a county described under
subdivision (a), 50% of the qualified taxpayer's investment paid or
accrued by the qualified taxpayer on projects completed in
accordance with the qualified taxpayer's wildlife risk mitigation
action plan provided that the investments do not exceed the amount
stated in the preapproval letter.
(2) The qualified taxpayer shall apply to the Michigan
department of agriculture for approval of the wildlife risk
mitigation action plan. The Michigan department of agriculture is
authorized to approve an application or project under this
subsection. A plan or project shall be approved or denied not more
than 60 days after receipt of the application. If the Michigan
department of agriculture approves a plan or a project under this
subsection, the Michigan department of agriculture shall issue a
preapproval letter that states that the taxpayer is a qualified
taxpayer; the maximum total investment for each project included in
the wildlife risk mitigation action plan and the maximum total of
all credits for the wildlife risk mitigation action plan when the
project or projects are completed and a certificate of completion
is issued; and the wildlife risk mitigation action plan number
assigned by the Michigan department of agriculture. If a plan or
project is denied under this subsection, a taxpayer is not
prohibited from subsequently applying under this subsection for
another plan or project. The Michigan department of agriculture
shall develop and use an application form for the approval of
wildlife risk mitigation action plans and projects under this
section.
(3) The Michigan department of agriculture shall consider the
following issues when approving a wildlife risk mitigation action
plan or project under subsection (2) or when considering an
amendment to a plan or project under subsection (5):
(a) Have livestock on this beef or dairy farm been infected
with tuberculosis within the last 20 years.
(b) How close is the nearest livestock farm that has been
known to be tuberculosis infected.
(c) Are livestock housed in buildings or confined areas.
(d) If livestock are pastured, do they have access to
woodlots, swamps, or other good daytime deer cover.
(e) How close to livestock are the nearest woodlots, swamps,
or other land that provide good daytime deer cover.
(f) How frequently have deer been seen or evidence of deer
been present in areas where livestock are kept or housed.
(g) What is the likelihood of finding bovine tuberculosis
infected free ranging white-tailed deer in the area.
(h) Any other issues that the department of agriculture
considers appropriate.
(4) A qualified taxpayer may apply for approval of a plan or
projects under this section for investments on more than 1 beef or
dairy farm owned or operated by the taxpayer during the tax year.
Each project approved and each project for which a certificate of
completion is issued under this section shall be for an investment
made in accordance with the qualified taxpayer's wildlife risk
mitigation action plan for that beef or dairy farm.
(5) If, after a taxpayer's plan or project has been approved
and the taxpayer has received a preapproval letter but before the
taxpayer has made any investment on the beef or dairy farm, the
taxpayer determines that the plan or project cannot be completed as
preapproved, the taxpayer may petition the Michigan department of
agriculture to amend the plan, the projects, and the preapproval
letter to increase the maximum total of all credits for the plan
and the projects included in that plan. A taxpayer may petition the
Michigan department of agriculture to make any other amendments to
the plan, projects, or preapproval letter at any time before a
certificate of completion is issued.
(6) When a project under this section is completed, the
taxpayer shall submit documentation that the project is completed,
an accounting of the cost of the project, the investment of the
taxpayer, and, if the taxpayer is not the owner or lessee of the
beef or dairy farm on which the investment was made at the time the
project is completed, that the taxpayer was the owner or lessee of,
or was a party to an agreement to purchase or lease, the beef or
dairy farm when all investments of the taxpayer were made. The
Michigan department of agriculture, for plans and projects approved
under subsection (2), shall verify that the project is completed.
The Michigan department of agriculture shall conduct an on-site
inspection as part of the verification process for projects
approved under subsection (2). When the completion of the project
is verified, a certificate of completion shall be issued to each
qualified taxpayer that has made an investment on that beef or
dairy farm. The certificate of completion shall state the total
amount of all credits for the project and that total shall not
exceed the maximum total of all credits listed in the preapproval
letter for the project under subsection (2) and as amended under
subsection (5) and shall state all of the following:
(a) That the taxpayer is a qualified taxpayer.
(b) The total cost of the project and the investment of the
qualified taxpayer.
(c) The qualified taxpayer's credit amount.
(d) The qualified taxpayer's federal employer identification
number or the Michigan treasury number assigned to the taxpayer.
(e) The project number.
(7) A qualified taxpayer shall claim credits under this
section in the tax year in which the certificate of completion is
issued. If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed under this
section exceed the qualified taxpayer's tax liability for the tax
year, that portion that exceeds the tax liability for the tax year
shall not be refunded but may be carried forward to offset tax
liability in subsequent tax years for 10 years or until used up,
whichever occurs first. Except as otherwise provided in this
subsection, the maximum time allowed under the carryforward
provisions under this subsection begins with the tax year in which
the certificate of completion is issued to the qualified taxpayer.
(8) As used in this section:
(a) "Modified accredited zone" means those areas identified in
this state under 9 CFR 77.11, as modified accredited zones.
(b) "Project" means the total of all investments on the
qualified taxpayer's property to complete certain risk mitigating
measures included in the qualified taxpayer's wildlife risk
mitigation action plan including, but not limited to, the
following:
(i) Making it difficult for wildlife to access feed by storing
livestock feed securely, restricting wildlife access to feeding and
watering areas, and deterring or reducing wildlife presence around
cattle and cattle feed by storing feed in an enclosed barn,
wrapping bales or covering stacks with tarps, closing ends of ag-
bags, storing grains in animal proof containers or bins,
maintaining fences, practicing small mammal and rodent control, or
feeding away from deer cover.
(ii) Minimizing wildlife access to cattle feed and water by
feeding cattle in an enclosed area, feeding in open areas near
buildings and human activity, removing extra or waste feed when
cattle are moved, using hay feeders to reduce waste, using
artificial water systems to help keep cattle from sharing water
sources with wildlife, fencing off stagnant ponds and wetlands, and
keeping mineral feeders near buildings and human activity or using
devices that restrict deer usage.
(c) "Qualified taxpayer" means a taxpayer that owns or
operates a beef or dairy farm located in a modified accredited zone
and that registered with the Michigan department of agriculture for
bovine tuberculosis testing and received a premises identification
number prior to September 1, 2008.
(d) "Wildlife risk mitigation action plan" or "plan" means a
written plan consisting of 1 or more projects to help reduce the
risks of bovine tuberculosis spreading between wildlife and
livestock that is approved by the Michigan department of
agriculture under section 14 of the animal industry act, 1988 PA
466, MCL 287.714.