March 26, 2009, Introduced by Rep. LeBlanc and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 431d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 431d. (1) An authorized business as determined under
section 8(9) of the Michigan economic growth authority act, 1995 PA
24, MCL 207.808, that is also a qualified business under this
section and has entered into an agreement to obtain the credit
under section 431(1)(e) may claim the credit for all tax years in a
single tax year ending before January 1, 2011 as designated by the
Michigan economic growth authority.
(2) The amount of the credit allowed by this section shall not
exceed the net present value of the total credits provided for all
tax years under section 431(1) as determined by the Michigan
economic growth authority and provided in the agreement. The
Michigan economic growth authority shall not enter into an
agreement to provide the credit in the manner provided by this
section unless it has determined that the taxpayer is likely to
retain the jobs specified in the agreement for the number of years
for which the credit under section 431 is provided and is likely to
retain long-term viability in this state as measured by its
continuing relationship with original equipment manufacturers or,
where applicable, tier one automotive suppliers. The total amount
of credits claimed under this section for all tax years shall not
exceed $250,000,000.00.
(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 sought under this section may, as
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 tax year that the taxpayer fails
to comply with this section or the agreement.
(4) 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.
(5) The certificate required by subsection (4) shall state all
of the following:
(a) The taxpayer is an authorized business.
(b) The taxpayer is a qualified business.
(c) The amount of the credit under this section for the
authorized business for the designated tax year.
(d) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(6) As used in this section:
(a) "Authorized business" means that term as defined in
section 3 of the Michigan economic growth authority act, 1995 PA
24, MCL 207.803.
(b) "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.
(c) "Qualified business" means a supplier or manufacturer of
motor vehicle components, tools and equipment, automotive
chemicals, and related products used in the production, repair, and
maintenance of all classes of motor vehicles.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4718(request no.
02870'09).
(b) Senate Bill No.____ or House Bill No. 4719(request no.
02892'09).
(c) Senate Bill No.____ or House Bill No. 4717(request no.
02893'09).
(d) Senate Bill No.____ or House Bill No. 4720(request no.
02894'09).