HB-4126, As Passed House, March 26, 2009

SUBSTITUTE FOR

HOUSE BILL NO. 4126

A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

(MCL 208.1101 to 208.1601) by adding section 431d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 431d. (1) An authorized business as determined under

section 8(9) of the Michigan economic growth authority act, 1995 PA

24, MCL 207.808, that is also a qualified business under this

section and has entered into an agreement to obtain the credit

under section 431(1)(e) may claim the credit for all tax years in a

single tax year ending before January 1, 2011 as designated by the

Michigan economic growth authority.

(2) The amount of the credit allowed by this section shall not

exceed the net present value of the total credits provided for

qualified new jobs or retained jobs, or both, for all tax years

under section 431(1) as determined by the Michigan economic growth

authority and provided in the agreement. The Michigan economic

growth authority shall not enter into an agreement to provide the

credit in the manner provided by this section unless it has

determined that the taxpayer is likely to retain or create the

jobs, or both, as specified in the agreement for the number of

years for which the credit under section 431 is provided and is

likely to retain and create long-term viability in this state as

measured by its continuing relationship with original equipment

manufacturers or, where applicable, tier one automotive suppliers.

The total amount of credits claimed under this section for all tax

years shall not exceed $250,000,000.00.

(3) A taxpayer that claims a credit under this section and

subsequently fails to meet the requirements of this section or any

other conditions included in an agreement entered into with the

Michigan economic growth authority in order to obtain a certificate

for which the credit was sought under this section may, as

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 taxpayer in the tax year that the taxpayer fails

to comply with this section or the agreement.

(4) A taxpayer shall not claim a credit under this section

unless the Michigan economic growth authority has issued a

certificate to the taxpayer. The taxpayer shall attach the

certificate to the annual return filed under this act on which a

credit under this section is claimed.

(5) The certificate required by subsection (4) shall state all

House Bill No. 4126 (H-2) as amended March 26, 2009

of the following:

(a) The taxpayer is an authorized business.

(b) The taxpayer is a qualified business.

authorized business for the designated tax year.

(d) The taxpayer's federal employer identification number or

the Michigan department of treasury number assigned to the

taxpayer.

(6) As used in this section:

(a) "Authorized business" means that term as defined in

section 3 of the Michigan economic growth authority act, 1995 PA

24, MCL 207.803.

(b) "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.

motor vehicle components, tools and equipment, automotive

chemicals, and related products used in the production, repair, and

maintenance of all classes of motor vehicles.

[Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 95th Legislature are enacted

into law:

(a) House Bill No. 4716.

(b) House Bill No. 4717.

(d) House Bill No. 4719.

(e) House Bill No. 4720.]