July 23, 2008, Introduced by Reps. Knollenberg, Hildenbrand, Agema, Moss, Shaffer, Hune, Marleau, Hoogendyk, Horn, Casperson, Steil, LaJoy, Pastor, Booher, Sheen, Caul, Palmer, Moore, Opsommer, Gaffney, Caswell, Stahl, Rick Jones, Pearce, 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 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 405 (MCL 208.1405), as amended by 2007 PA 145.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 405. (1) For the 2008 tax year, a taxpayer may claim a
credit against the tax imposed by this act equal to 1.52% of the
taxpayer's research and development expenses in this state in the
tax year. For the 2009 tax year and each tax year after 2009, a
taxpayer may claim a credit against the tax imposed by this act
equal to 1.90% of the taxpayer's research and development expenses
in
this state in the tax year. The credit under this section
subsection combined with the total combined credit allowed under
section 403 shall not exceed 65% of the tax liability imposed under
this act before the imposition and levy of the surcharge under
section
281. As used in this section, "research
(2) For the 2008 tax year and each tax year after 2008, a
taxpayer that is engaged in the research and development of induced
pluripotent stem cells and does not claim a credit under section
254 of the income tax act of 1967, 1967 PA 281, MCL 206.254, may
claim an additional credit against the tax imposed by this act
equal to 0.5% of the taxpayer's research and development expenses
in this state in the tax year. A taxpayer that is also engaged in
the research and development of human embryonic stem cells is not
allowed to claim the additional credit under this subsection.
(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 that term as
defined in section 41(b) 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.