June 12, 2008, Introduced by Reps. Clemente, Coulouris, Mayes, Horn, Moolenaar and Griffin and referred to the Committee on New Economy and Quality of Life.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 431c (MCL 208.1431c), as added by 2008 PA 88.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 431c. (1) Except as otherwise provided under this
section, a qualified taxpayer may claim a credit against the tax
imposed by this act equal to the sum of up to 5.0% of the taxable
value of each qualified supplier's or customer's taxable property
that is located within the 10-mile radius of the qualified taxpayer
and that is subject to collection of general ad valorem taxes under
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,
for a period of up to 5 years, as determined by the Michigan
economic growth authority. If a qualified supplier's or customer's
taxable property that is located within the 10-mile radius of the
qualified taxpayer is subject to the specific tax levied under 1974
PA 198, MCL 207.551 to 207.572, the qualified taxpayer may only
include up to 2.5% of the taxable value of that property in the
calculation of the amount of the credit allowed under this section.
(2) The Michigan economic growth authority shall not designate
more than 5 taxpayers as an anchor company in each calendar year
and shall not approve more than 5 new credits in each calendar year
under this subsection. A taxpayer has 5 years from the date on
which the taxpayer is designated as an anchor company to seek
certification as a qualified taxpayer for each qualified supplier
or customer for which a credit is sought under this section.
However, a credit shall not be provided for a tax year prior to the
tax year during which the designation as an anchor company is made.
If a qualified taxpayer is awarded a credit under this section, any
subsequent credits awarded to that qualified taxpayer shall not be
included in determining the yearly limit of 5 new credits under
this subsection.
(3) The Michigan economic growth authority may provide that
qualified sales to a qualified supplier or customer shall not be
considered in calculating the sales factor under this act for the
tax year for which a credit is provided under this section.
(4) (2)
A taxpayer shall not claim a credit
under this section
unless the Michigan economic growth authority has issued a
certificate
to the qualified taxpayer. However, a credit shall not
be
provided for a tax year prior to the tax year during which the
certification
is issued. The qualified taxpayer
shall attach the
certificate to the annual return filed under this act on which the
credit under this section is claimed. The certificate required by
this subsection shall state all of the following:
(a) The taxpayer is a qualified taxpayer and the date on which
the taxpayer was designated as an anchor company.
(b) The amount of the credit under this section for the
taxpayer for the designated tax year.
(c) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(5) (3)
A qualified taxpayer that claims a
credit under this
section and subsequently fails to meet the requirements of this
section or any other conditions established by the Michigan
economic growth authority in order to obtain a certificate for
which the credit was claimed under this section may, as to be
determined by the Michigan economic growth authority, have its
credit reduced or terminated or have a percentage of the credit
amount previously claimed under this section added back to the tax
liability of the qualified taxpayer in the year that the qualified
taxpayer fails to comply with this section or the agreement.
(6) (4)
If the credit allowed under this
subsection exceeds
the liability of the qualified taxpayer for the tax year, the
qualified taxpayer may elect to have that portion that exceeds the
tax liability of the qualified taxpayer refunded or to have the
excess carried forward to offset tax liability in subsequent years
for 5 years or until it is used up, whichever occurs first.
(7) A credit under this section may be taken after all other
allowable nonrefundable credits under this act.
(8) (5)
As used in this section:
(a) "Anchor company" means a qualified high-technology
business that is an integral part of a high-technology activity and
that has the ability or potential ability to influence business
decisions and site location of qualified suppliers and customers.
(b) "Business", "qualified high-technology activity", and
"qualified high-technology business" mean those terms as defined in
the Michigan economic growth authority act, 1995 PA 24, MCL 207.801
to 207.810.
(c) "Full-time job" means a job performed by an individual for
35 hours or more each week and whose income and social security
taxes are withheld by 1 or more of the following:
(i) A qualified supplier or customer.
(ii) An employee leasing company on behalf of a qualified
supplier or customer.
(iii) A professional employer organization on behalf of a
qualified supplier or customer.
(d) "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.
(e) "Qualified new job" means a full-time job created by a
qualified supplier or customer at a facility or facilities that is
in excess of the number of full-time jobs a qualified supplier or
customer maintained in this state or facility prior to the
expansion or location, as determined by the authority.
(f) "Qualified sales to a qualified supplier or customer"
means sales to a qualified supplier or customer that are in excess
of the Michigan sales to the supplier or customer prior to the year
of expansion or location within this state as determined by the
Michigan economic growth authority and that would otherwise be
included in the calculation of the sales factor under this act.
(g) (f)
"Qualified supplier or
customer" means a business that
opens a new location in this state, a business that locates in this
state, or an existing business located in this state that expands
its business within the last year as a result of an anchor company
and satisfies prior to the issuance of a certificate and at the
time specified in the agreement with the qualified taxpayer, as
certified by the Michigan economic growth authority, each of the
following:
(i) Has financial transactions with the anchor company.
(ii) Sells a critical or unique component or technology
necessary for the anchor company to market a finished product as
the result of a commercial relationship with the anchor company or
buys a critical or unique component from the anchor company.
(iii) Has created more than 10 qualified new jobs.
(iv) Has made an investment of at least $1,000,000.00 as
certified by the Michigan economic growth authority.
(h) (g)
"Qualified taxpayer"
means a taxpayer that was
designated by the Michigan economic growth authority as an anchor
company within the last 5 years and that has influenced 1 or more
qualified suppliers or customers to open, locate, or expand their
business and conduct business activity within a 10-mile radius of
the anchor company.