April 30, 2009, Introduced by Senators ALLEN and KAHN and referred to the Committee on Commerce and Tourism.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 431c (MCL 208.1431c), as added by 2008 PA 88.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 431c. (1) Except as otherwise provided under this
section, a qualified taxpayer may claim a credit against the tax
imposed by this act equal to the sum of up to 5.0% of the taxable
value of each qualified supplier's or qualified customer's taxable
property that is located within the 10-mile radius of the qualified
taxpayer or is located in a county adjacent to the qualified
taxpayer and within an existing industrial park that is approved by
the Michigan economic growth authority and that is subject to
collection of general ad valorem taxes under the general property
tax act, 1893 PA 206, MCL 211.1 to 211.155, and that credit may be
based upon each of the qualified supplier's and qualified
customer's taxable value described above in this subsection for a
period of up to 5 years, as determined by the Michigan economic
growth authority. If a qualified supplier's or qualified customer's
taxable property that is located within the 10-mile radius of the
qualified taxpayer or is located in a county adjacent to the
qualified taxpayer and within an existing industrial park that is
approved by the Michigan economic growth authority is subject to
the specific tax levied under 1974 PA 198, MCL 207.551 to 207.572,
the qualified taxpayer may only include up to 2.5% of the taxable
value of that property in the calculation of the amount of the
credit allowed under this section.
(2) The Michigan economic growth authority shall not designate
more
than 5 taxpayers as an anchor company new anchor companies in
each calendar year and shall not approve more than 5 new credits in
each
calendar year under this subsection. A taxpayer An anchor
company
has 5 years from the date on which the taxpayer
is
designated
as an anchor company designation occurs to seek
certification from the Michigan economic growth authority as a
qualified taxpayer for each qualified supplier or qualified
customer
for which a credit is sought that
is included in the
credit which that anchor company is seeking under this section.
However, a credit shall not be provided for a tax year prior to the
tax year during which the designation as an anchor company is made.
(3) The Michigan economic growth authority may provide that
qualified sales to a qualified customer shall not be considered in
calculating the sales factor under this act for the tax year for
which a credit is provided under this section.
(4) (2)
A taxpayer shall not claim a credit
under this section
unless the Michigan economic growth authority has issued a
certificate
to the qualified taxpayer. However, a credit shall not
be
provided for a tax year prior to the tax year during which the
certification
is issued. The qualified 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 and the date on which
the taxpayer was designated as an anchor company.
(b) The amount of the credit under this section for the
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.
(d) Subject to subsection (3), the amount of the qualified
sales to a qualified customer.
(5) (3)
A qualified taxpayer that claims a
credit under this
section and subsequently fails to meet the requirements of this
section
or any other conditions established by included in an
agreement entered into with the Michigan economic growth authority
in order to obtain a certificate for which the credit was claimed
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 qualified
taxpayer in the year that the qualified taxpayer fails to comply
with this section or the agreement.
(6) (4)
If the credit allowed under this
subsection exceeds
the liability of the qualified taxpayer for the tax year, the
qualified taxpayer may elect to have that portion that exceeds the
tax liability of the qualified taxpayer refunded or to have the
excess carried forward to offset tax liability in subsequent years
for 5 years or until it is used up, whichever occurs first.
(7) A credit under this section may be taken after all other
allowable nonrefundable credits under this act.
(8) (5)
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 ability or potential ability to influence business
decisions and site location of qualified suppliers and qualified
customers.
(b) "Business", "qualified high-technology activity", and
"qualified high-technology business" mean those terms as defined in
the Michigan economic growth authority act, 1995 PA 24, MCL 207.801
to 207.810.
(c) "Full-time job" means a job performed by an individual for
35 hours or more each week and whose income and social security
taxes are withheld by 1 or more of the following:
(i) A qualified supplier or qualified customer.
(ii) An employee leasing company on behalf of a qualified
supplier or qualified customer.
(iii) A professional employer organization on behalf of a
qualified supplier or qualified customer.
(d) "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.
(e) "Qualified new job" means a full-time job created by a
qualified supplier or qualified customer at a facility or
facilities that is in excess of the number of full-time jobs a
qualified supplier or qualified customer maintained in this state
or facility prior to the expansion or location, as determined by
the authority.
(f) "Qualified sales to a qualified customer" means sales to a
qualified customer that are in excess of the Michigan sales to the
customer prior to the year of expansion or location within this
state as determined by the Michigan economic growth authority and
that would otherwise be included in the calculation of the sales
factor under this act.
(g) (f)
"Qualified supplier"
or and "qualified customer" means
mean a business that opens a new location in this state, a business
that locates in 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 prior to the issuance of a
certificate and at the time specified in the agreement with the
qualified taxpayer, as certified by the Michigan economic growth
authority, each of the following:
(i) Has financial transactions with the anchor company.
(ii) Sells a critical or unique component or technology
necessary for the anchor company to market a finished product as
the result of a commercial relationship with the anchor company or
buys a critical or unique component from the anchor company.
(iii) Has created more than 10 qualified new jobs.
(iv) Has made an investment of at least $1,000,000.00 as
certified by the Michigan economic growth authority.
(h) (g)
"Qualified taxpayer"
means a taxpayer that was
designated by the Michigan economic growth authority as an anchor
company
within the last 5 years and that has influenced 1 or more a
qualified
suppliers supplier or customers qualified customer to
open,
locate, or expand their business in this state and conduct
business activity within a 10-mile radius of the anchor company or
within a county adjacent to the taxpayer and within an existing
industrial park that is approved by the Michigan economic growth
authority.
Enacting section 1. This amendatory act is effective for tax
years that begin after December 31, 2008.