June 16, 2005, Introduced by Reps. Sheen and Drolet and referred to the Committee on Tax Policy.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding section 35e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35e. (1) For tax years that begin on or after January 1,
2006, a taxpayer that is a research and development company may
claim a credit against the tax imposed by this act equal to 1.2% of
compensation as defined in section 4 for services performed in this
state that are research or experimental activities.
(2) An affiliated group as defined in this act, a controlled
group of corporations as defined in section 1563 of the internal
revenue code and further described in 26 CFR 1.414(b)-1 and
1.414(c)-1 to 1.414(c)-5, or an entity under common control as
defined by the internal revenue code shall not claim the credit
allowed by this section as a research and development company
unless the business activities of the entities are consolidated for
the purpose of determining whether the taxpayer is a research and
development company. For purposes of this subsection, business
activities include all activities within and outside of this state.
(3) The credit allowed under this section for the tax year
shall not be refunded and shall not be carried forward as an offset
to the tax liability in subsequent tax years.
(4) The credit under this section shall be claimed against the
taxpayer's tax liability as determined after the application of the
credit allowed under section 35d.