July 23, 2008, Introduced by Reps. Pearce, Hildenbrand, Agema, Moss, Shaffer, Hune, Marleau, Hoogendyk, Horn, Casperson, Steil, LaJoy, Pastor, Booher, Sheen, Caul, Palmer, Moore, Opsommer, Gaffney, Caswell, Stahl, Rick Jones, Knollenberg, Pavlov, Moolenaar, Nitz, Amos, Hansen, Ward, Rocca, Meltzer, Proos, Elsenheimer, Schuitmaker, Acciavatti, Meekhof, Nofs, Stakoe, Green, Ball, David Law, Palsrok, Walker, Garfield, DeRoche, Huizenga, Clemente, Calley, Sheltrown and Wenke and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 254.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 254. (1) Except as otherwise provided under this section,
a taxpayer that is engaged in the research and development of
induced pluripotent stem cells may claim a credit against the tax
imposed by this act equal to 2.40% of the taxpayer's research and
development expenses in this state in the tax year. The maximum
amount of the credit allowed under this section shall not exceed
65% of the taxpayer's tax liability imposed under this act.
(2) A taxpayer that is also engaged in the research and
development of human embryonic stem cells is not allowed to claim
the credit under this section.
(3) As used in this section:
(a) "Induced pluripotent stem cell research" means the process
of generating induced pluripotent stem cells or using induced
pluripotent stem cells to study disease, develop drugs, create
cell-based therapies, or develop or manufacture products or for use
in transplantation medicine or other beneficial research
activities.
(b) "Induced pluripotent stem cells" means dedifferentiated
adult human somatic cells that are pluripotent, are nonembryonic
functional equivalents of embryonic stem cells, and are generated
by reprogramming differentiated human somatic cells into a
pluripotent state without using human eggs, embryos, or embryonic
stem cells.
(c) "Pluripotent" means the ability to perpetually
differentiate into mesoderm, ectoderm, and endoderm.
(d) "Research and development expenses" means qualified
research expenses as that term is defined under section 41 of the
internal revenue code.
(e) "Research and development of human embryonic stem cells"
means the activity of extracting stem cells from embryos or using
stem cells extracted from embryos to study disease, develop drugs,
create cell-based therapies, or develop or manufacture products or
for use in transplantation medicine or other beneficial research
activities.