HB-5459, As Passed House, December 7, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5459

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

(MCL 208.1 to 208.145) by adding section 35j.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 35j. (1) A taxpayer that enters into an agreement under

subsection (3) and that provides transferred jobs to this state may

claim a credit against the tax imposed by this act equal to 100% of

the property taxes paid on tangible personal property the use of

which is directly related to the transferred jobs. The credit

allowed under this section shall only be available for taxes paid

the first year that the taxpayer pays property taxes on that

property which shall be the same tax year in which the credit under

this section based on those property taxes is claimed.

     (2) The credit under subsection (1) can be claimed only for

taxes paid in the 2009 tax year.

     (3) A taxpayer may claim the credit allowed under this section

if the taxpayer enters into an agreement with the Michigan economic

growth authority that states all of the following:

     (a) The taxpayer will provide transferred jobs in this state

in excess of the number of jobs the taxpayer maintained in this

state in the immediately preceding tax year.

     (b) The taxpayer will locate tangible personal property the

use of which is directly related to those transferred jobs in this

state.

     (c) The transfer of the jobs and location of the tangible

personal property cannot reasonably be completed by the taxpayer

before January 1, 2007.

     (4) The Michigan economic growth authority shall issue a

certificate to the taxpayer certifying that the criteria under

subsection (3) have been met, and the taxpayer shall attach the

certificate to the annual return required under this act on which

the credit under this section is claimed.

     (5) If the taxpayer does not maintain the total number of

transferred jobs located in this state for 3 years after the year

in which a credit under this section was claimed, the following

percentage of the credit amount previously claimed under this

section shall be added back to the tax liability of the taxpayer in

that year:

     (a) If the total number of transferred jobs is less during the

first year after the year in which the credit was claimed, 100%.

     (b) If the total number of transferred jobs is less during the

second year after the year in which the credit was claimed and

subdivision (a) did not apply, 67%.

     (c) If the total number of transferred jobs is less during the

third year after the year in which the credit was claimed and if

neither subdivision (a) nor (b) applied, 33%.

     (6) Personal property taxes used to calculate a credit under

this section shall not be used to calculate a credit under section

35d, 35f, 35g, or 35h.

     (7) The credit allowed under this section shall be calculated

after application of all other credits allowed under this act.

     (8) As used in this section, "property taxes" and "transferred

jobs" mean those terms as defined in section 35i.

     Enacting section 1.  This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 203.

     (b) Senate Bill No. 909.

     (c) Senate Bill No. 910.

     (d) House Bill No. 4982.

     (e) House Bill No. 5460.

     (f) House Bill No. 5461.