HB-5345, As Passed House, April 27, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5345

                                                                             A bill to amend 1964 PA 284, entitled                                             

"City income tax act,"                                                      

(MCL 141.501 to 141.787) by adding section 35a to chapter 2.                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1                               CHAPTER 2                                       

2   Sec. 35a.  (1) The credit under this section is effective                   

3   for a city that, not more than 90 days after the effective date             

4   of the amendatory act that added this section, adopts a                     

5   resolution to include this section in this ordinance.                       

6       (2) For tax years that begin after December 31, 2004, a                     

7   taxpayer that is a qualified start-up business may claim a credit           

8   against the tax imposed by this act each tax year equal to the              

9   taxpayer's tax liability attributable to that qualified start-up            

10  business for the tax year in each of the 5 consecutive tax years            

11  beginning with the first tax year in which the qualified start-up           

House Bill No. 5345 (H-4) as amended April 27, 2004

1   business claims a credit under section 31a of the single business           

2   tax act, 1975 PA 228, MCL 208.31a, or section 51f of the income             

3   tax act of 1967, 1967 PA 281, MCL 206.51f.                                  

4       (3) As used in this section, "qualified start-up business"                  

5   means that term as defined in section 31a of the single business            

6    tax act, 1975 PA 228, MCL 208.31a.

[Enacting section 1.  This amendatory act does not take effect unless House Bill No. 5331 of the 92nd Legislature is enacted into law.]