HB-4365, As Passed House, October 29, 2015HB-4365, As Passed Senate, October 29, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4365

A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

by amending section 419 (MCL 208.1419).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 419. (1) For tax years that begin after December 31,

2008, a taxpayer that has been issued a tax voucher certificate

under section 23 of the Michigan early stage venture investment act

of 2003, 2003 PA 296, MCL 125.2253, or any taxpayer to which all or

a portion of a tax voucher is transferred pursuant to the Michigan

early stage venture investment act of 2003, 2003 PA 296, MCL

125.2231 to 125.2263, may use the tax voucher to pay a liability of

the taxpayer due under this act.

(2) The total amount of all tax voucher certificates that

shall be approved under this section, section 37e of former 1975 PA

228, and the Michigan early stage venture investment act of 2003,

2003 PA 296, MCL 125.2231 to 125.2263, shall not exceed an amount

sufficient to allow the Michigan early stage venture investment

corporation to raise $450,000,000.00 for the purposes authorized

under the Michigan early stage venture investment act of 2003, 2003

PA 296, MCL 125.2231 to 125.2263. The total amount of all tax

voucher certificates under this section and section 37e of former

1975 PA 228 shall not exceed ~~$600,000,000.00.~~$450,000,000.00.

(3) The department shall not approve a tax voucher certificate

under section 23(2) of the Michigan early stage venture investment

act of 2003, 2003 PA 296, MCL 125.2253, after December 31, 2015.

(4) For tax voucher certificates approved under subsection

(2), the amount of tax voucher certificates approved by the

department for use in any tax year shall not exceed 25% of the

total amount of all tax voucher certificates approved by the

department.

(5) Investors shall apply to the Michigan early stage venture

investment corporation for approval of tax voucher certificates at

the time and in the manner required under the Michigan early stage

venture investment act of 2003, 2003 PA 296, MCL 125.2231 to

125.2263.

(6) The Michigan early stage venture investment corporation

shall determine which investors are eligible for tax vouchers and

the amount of the tax vouchers allowed to each investor as provided

in the Michigan early stage venture investment act of 2003, 2003 PA

296, MCL 125.2231 to 125.2263.

(7) The tax voucher certificate, and any completed transfer

form that was issued pursuant to the Michigan early stage venture

investment act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263,

shall be attached to the taxpayer's annual return under this act.

The department may prescribe and implement alternative methods of

reporting and recording ownership, transfer, and utilization of tax

voucher certificates that are not inconsistent with this act.

(8) A tax voucher shall be used to pay a liability of the

taxpayer due under this act only in a tax year that begins after

December 31, 2008. The amount of the tax voucher that may be used

to pay a liability of the taxpayer due under this act in any tax

year shall not exceed the lesser of the following:

(a) The amount of the tax voucher stated on the tax voucher

certificate held by the taxpayer.

(b) The amount authorized to be used in the tax year under the

terms of the tax voucher certificate.

year for which the tax voucher is to be applied.

(9) The department shall administer transfers of tax voucher

certificates or the transfer of the right to be issued and receive

a tax voucher certificate as provided in the Michigan early stage

venture investment act of 2003, 2003 PA 296, MCL 125.2231 to

125.2263, and shall take any action necessary to enforce and

effectuate the permissible issuance and use of tax voucher

certificates in a manner authorized under this section and the

Michigan early stage venture investment act of 2003, 2003 PA 296,

MCL 125.2231 to 125.2263.

(10) If the amount of a tax voucher certificate held by a

taxpayer or transferee exceeds the amount the taxpayer or

transferee may use under subsection (8)(b) or (c) in a tax year,

that excess may be used by the taxpayer or transferee to pay,

subject to the limitations of subsection (8), any future liability

of the taxpayer or transferee under this act.

(11) If a taxpayer requests, the department shall issue

separate replacement tax voucher certificates, or replacement

approval letters, evidencing the right of the holder to be issued

and receive a tax voucher certificate in an aggregate amount equal

to the amount of a tax voucher certificate or an approval letter

presented by a taxpayer. Replacement tax voucher certificates may

be used, and replacement approval letters may be issued, to

evidence the right to be issued and receive a tax voucher

certificate that will be used for 1 or more of the following

purposes:

(a) To pay any liability of the taxpayer under this act to the

extent permitted in any tax year by subsection (8).

(b) To pay any liability of the taxpayer under and to the

extent allowed under section 270 of the income tax act of 1967,

1967 PA 281, MCL 206.270.

replacement tax voucher certificate to pay any liability under this

act to the extent allowed under subsection (8).

(d) To be transferred to a taxpayer that may use the tax

voucher certificate to pay any liability under and to the extent

allowed under section 270 of the income tax act of 1967, 1967 PA

281, MCL 206.270.

(12) As used in this section:

(a) "Investor" means that term as defined in the Michigan

early stage venture investment act of 2003, 2003 PA 296, MCL

125.2231 to 125.2263.

(b) "Certificate" means the certificate issued under section

23 of the Michigan early stage venture investment act of 2003, 2003

PA 296, MCL 125.2253.

certificate has been transferred under section 23 of the Michigan

early stage venture investment act of 2003, 2003 PA 296, MCL

125.2253, and this section.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 98th Legislature are

enacted into law:

(a) House Bill No. 4195.

(b) House Bill No. 4196.