September 15, 2010, Introduced by Senator PRUSI and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 439 (MCL 208.1439).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 439. (1) A taxpayer may claim a credit against the tax
imposed by this act equal to $1.00 per long ton of qualified low-
grade hematite consumed in an industrial or manufacturing process
that is the business activity of the taxpayer. An unused
carryforward of a credit under section 39d of former 1975 PA 228
that was unused at the end of the last tax year for which former
1975 PA 228 was in effect may be claimed against the tax imposed
under this act for the years the carryforward would have been
available under section 39d of former 1975 PA 228.
(2) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed under this
section exceed the tax liability of the taxpayer for the tax year,
the excess shall not be refunded, but may be carried forward as an
offset to the tax liability in subsequent tax years for 5 tax years
or until the excess credit is used up, whichever occurs first.
(3) A taxpayer may assign all or a portion of a credit allowed
under this section or section 39d of former 1975 PA 228. A taxpayer
may claim a portion of a credit and assign the remaining credit
amount. A credit assignment under this subsection is irrevocable. A
credit assignment under this subsection shall be made on a form
prescribed by the Michigan economic growth authority. An assignee
shall send a copy of the completed assignment form to the
department and shall attach a copy of the completed assignment form
to its annual return required under this act for the tax year in
which the credit is claimed.
(4) (3)
The credit under this section shall
be based on low-
grade hematite consumed on and after January 1, 2000.
(5) (4)
As used in this section:
(a) "Consumed in an industrial or manufacturing process" means
a process in which low-grade hematite is used as a raw material in
the production of pig iron or steel.
(b) "Low-grade hematite" means any hematitic iron formation
that is not of sufficient quality in its original mineral state to
be mined and shipped for the production of pig iron or steel
without first being drilled, blasted, crushed, and ground very fine
to liberate the iron minerals and for which additional
beneficiation and agglomeration are required to produce a product
of sufficient quality to be used in the production of pig iron or
steel.
(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) (c)
"Qualified low-grade
hematite" means pellets produced
from low-grade hematitic iron ore mined in the United States.