October 15, 2008, Introduced by Rep. Bieda and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 463.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 463. (1) A taxpayer may claim a credit against the tax
imposed by this act equal to 100% of the taxpayer's total tax
liability imposed under this act that is attributable to a
qualified real estate entity.
(2) For purposes of this section, the tax liability
attributable to a qualified real estate entity shall be measured by
the reduction in the taxpayer's tax liability which would result if
the qualified real estate entity did not exist.
(3) As used in this section:
(a) "Qualified real estate" means real estate that is located
outside this state and that is acquired prior to the effective date
of the amendatory act that added this section.
(b) "Qualified real estate entity" means a person that is
directly or indirectly owned by less than 6 individuals, that
generates income exclusively from the management, operation, or
sale of qualified real estate, and that has less than $10,000.00 of
business income from working capital that is related to the
management, operation, or sale of qualified real estate.