SB-0387, As Passed Senate, December 12, 2006
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 387
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding section 34; and to repeal acts and
parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 34. (1) For tax years that begin on or after January 1,
2006 and end before January 1, 2016, a taxpayer that is engaged in
research and development of a qualified technology may claim a
credit against the tax imposed by this act equal to 3.9% of the
compensation as defined in section 4 for services performed in a
qualified facility, paid to the employees at the qualified facility
in the tax year, if the taxpayer has entered into an agreement
before April 1, 2007 with the Michigan economic growth authority
that provides all of the following:
(a) The type and number of jobs at the qualified facility to
which the agreement applies.
(b) The type of work to be performed by the employees
performing the jobs provided under subdivision (a) by the taxpayer.
(c) Any other terms and conditions that the Michigan economic
growth authority considers to be in the public interest.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion that
exceeds the tax liability shall be refundable.
(3) The maximum amount of the credit allowed under this
section that any 1 taxpayer may claim shall not exceed
$3,000,000.00 in a single tax year.
(4) As used in this section:
(a) "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.
(b) "Motor vehicle" means a motor vehicle as defined in
section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33,
that is designed as a passenger vehicle, or sport utility vehicle,
but does not include a motor home, bus, truck other than a pickup
truck or van, or a vehicle designed to travel on less than 4
wheels.
(c) "Qualified city" means a city that meets both of the
following criteria:
(i) Has a population of not less than 80,000 and not more than
82,000 as designated by the United States bureau of the census in
the 2000 census.
(ii) Is located in a county that has a population of not less
than 1,000,000 and not more than 1,300,000 as designated by the
United States bureau of the census in the 2000 census.
(d) "Qualified facility" means a leased facility in a
qualified city used for the research and development of a qualified
technology.
(e) "Qualified technology" means a hybrid system the primary
purpose of which is the propulsion of a motor vehicle.
(f) "Research and development" means "qualified research" as
that term is defined in section 41(d) of the internal revenue code.
Enacting section 1. Section 32 of the single business tax act,
1975 PA 228, MCL 208.32, is repealed.