SB-1093, As Passed Senate, March 25, 2004                                   

SUBSTITUTE FOR

SENATE BILL NO. 1093

                                                                             A bill to amend 1975 PA 228, entitled                                             

"Single business tax act,"                                                  

(MCL 208.1 to 208.145) by adding section 37f.                               

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 37f.  (1) For tax years that begin after December 31,                  

2   2004, a taxpayer with gross receipts of $10,000,000.00 or less              

3   for a tax year may claim a credit against the tax imposed by this           

4   act equal to 1% of compensation paid to employees who perform               

5   created jobs for that tax year.                                             

6       (2) If the credit allowed under this section for the tax year               

7   and any unused carryforward of the credit allowed under this                

8   section exceed the tax liability of the taxpayer for the tax                

9   year, the excess shall not be refunded, but may be carried                  

10  forward as an offset to the tax liability in subsequent tax years           

11  for 10 tax years or until the excess credit is used up, whichever           

1   occurs first.                                                               

2       (3) As used in this section, "created jobs" means jobs that                 

3   meet all of the following criteria:                                         

4       (a) Did not exist in this state in the immediately preceding                

5   tax year.                                                                   

6       (b) Represent an overall increase in full-time equivalent                   

7   jobs in this state for the tax year from the total number of                

8   full-time equivalent jobs in this state in the immediately                  

9   preceding tax year.                                                         

10      (c) Is not a job into which an employee transfers if the                    

11  employee worked in this state for the taxpayer or an entity with            

12  which the taxpayer files a consolidated return under section 77             

13  in another job prior to beginning the created job.                          

14      (d) The benefits for the employee in the created job include                

15  health care coverage or health insurance.