March 19, 2015, Introduced by Rep. Iden and referred to the Committee on Commerce and Trade.
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.
(c) The taxpayer's liability due under this act for the tax
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.
(c) To be transferred to a taxpayer that may use the
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.
(c) "Transferee" means a taxpayer to whom a tax voucher
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.