Bill Text: MI HB6108 | 2009-2010 | 95th Legislature | Introduced

---

Bill Title: Michigan business tax; credit; credits for certain facilities; sunset. Amends secs. 409, 410, 410a & 446 of 2007 PA 36 (MCL 208.1409 et seq.). TIE BAR WITH: HB 5249'09, HB 6103'10, HB 6104'10, HB 6105'10, HB 6106'10, HB 6107'10, HB 6109'10, HB 6110'10, HB 6111'10, HB 6112'10, HB 6113'10, HB 6114'10, HB 6115'10, HB 6116'10, HB 6117'10, HB 6118'10, HB 6119'10

Spectrum: Partisan Bill (Republican 12-0)

Status: (Introduced - Dead) 2010-05-05 - Printed Bill Filed 05/05/2010 [HB6108 Detail]

Download: Michigan-2009-HB6108-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 6108

 

May 4, 2010, Introduced by Reps. Daley, Amash, McMillin, Agema, Paul Scott, Green, Meekhof, Meltzer, Crawford, Rogers, Kowall and Booher and referred to the Committee on Tax Policy.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

by amending sections 409, 410, 410a, and 446 (MCL 208.1409,

 

208.1410, 208.1410a, and 208.1446), section 409 as amended by 2008

 

PA 572, section 410 as amended by 2008 PA 114, section 410a as

 

added by 2008 PA 115, and section 446 as added by 2008 PA 507.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 409. (1) For Subject to the limitation under this

 

subsection, for tax years that begin on or after January 1, 2008

 

and end before January 1, 2013 2011, an eligible taxpayer may claim

 

a credit against the tax imposed by this act equal to the amount of

 

capital expenditures in this state on infield renovation,

 

grandstand and infrastructure upgrades, and any other construction

 

and upgrades. , subject to the following:

 

     (a) For the 2008 through 2010 tax years, the The credit shall

 

not exceed $2,100,000.00 or the taxpayer's tax liability under this

 

act, whichever is less.

 

     (b) For the 2011 tax year, the credit shall not exceed

 

$1,580,000.00 or the taxpayer's tax liability under this act,

 

whichever is less.

 

     (c) For the 2012 tax year, the credit shall not exceed

 

$1,050,000.00 or the taxpayer's tax liability under this act,

 

whichever is less.

 

     (2) In addition to the credit allowed under subsection (1),

 

for the 2009 tax year an eligible taxpayer may claim a credit

 

against the tax imposed by this act equal to 50% of the amount of

 

necessary expenditures in this state incurred including any

 

professional fees, additional police officers, and any traffic

 

management devices, to ensure traffic and pedestrian safety while

 

hosting the requisite motorsports events each calendar year. For

 

the 2010 tax year, and each tax year after 2010, an eligible

 

taxpayer may claim a credit against the tax imposed by this act

 

equal to all of the necessary expenditures in this state incurred

 

including any professional fees, additional police officers, and

 

any traffic management devices, to ensure traffic and pedestrian

 

safety while hosting the requisite motorsports events each calendar

 

year. If the amount of the credit allowed under this subsection

 

exceeds the tax liability of the taxpayer for the tax year that

 

excess shall be refunded.

 

     (3) An eligible taxpayer shall expend at least $30,000,000.00

 

on capital expenditures before January 1, 2011.

 

     (4) As used in this section:

 

     (a) "Eligible taxpayer" means any of the following:

 

     (i) A person who owns and operates a motorsports entertainment

 

complex and has at least 2 days of motorsports events each calendar

 

year which shall be comparable to NASCAR Nextel cup events held in

 

2007 or their successor events.

 

     (ii) A person who is the lessee and operator of a motorsports

 

entertainment complex or the lessee of the land on which a

 

motorsports entertainment complex is located and operates that

 

motorsports entertainment complex.

 

     (iii) A person who operates and maintains a motorsports

 

entertainment complex under an operation and management agreement.

 

     (b) "Motorsports entertainment complex" means a closed-course

 

motorsports facility, and its ancillary grounds and facilities,

 

that satisfies all of the following:

 

     (i) Has at least 70,000 fixed seats for race patrons.

 

     (ii) Has at least 6 scheduled days of motorsports events each

 

calendar year.

 

     (iii) Serves food and beverages at the motorsports entertainment

 

complex during motorsports events each calendar year through

 

concession outlets, which are staffed by individuals who represent

 

or are members of 1 or more nonprofit civic or charitable

 

organizations that directly benefit from the concession outlets'

 

sales.

 

     (iv) Engages in tourism promotion.

 

     (v) Has permanent exhibitions of motorsports history, events,

 

or vehicles within the motorsports entertainment complex.

 

     (c) "Motorsports event" means a motorsports race and its

 

ancillary activities that have been sanctioned by a sanctioning

 

body.

 

     (d) "Sanctioning body" means the American motorcycle

 

association (AMA); auto racing club of America (ARCA); championship

 

auto racing teams (CART); grand American road racing association

 

(GRAND AM); Indy racing league (IRL); national association for

 

stock car auto racing (NASCAR); national hot rod association

 

(NHRA); professional sports car racing (PSR); sports car club of

 

America (SCCA); United States auto club (USAC); Michigan state

 

promoters association; or any successor organization or any other

 

nationally or internationally recognized governing body of

 

motorsports that establishes an annual schedule of motorsports

 

events and grants rights to conduct the events, that has

 

established and administers rules and regulations governing all

 

participants involved in the events and all persons conducting the

 

events, and that requires certain liability assurances, including

 

insurance.

 

     Sec. 410. (1) For tax years that begin on or after January 1,

 

2008 and end before January 1, 2013 2011, an eligible taxpayer may

 

claim a credit against the tax imposed by this act equal to the

 

following:

 

     (a) For the 2008 through 2010 tax years, 65% of the eligible

 

taxpayer's total tax liability imposed under this act not to exceed

 

$1,700,000.00.

 

     (b) For the 2011 tax year, 45% of the eligible taxpayer's

 

total tax liability imposed under this act not to exceed

 

$1,180,000.00.

 

     (c) For the 2012 tax year, 25% of the eligible taxpayer's

 

total tax liability imposed under this act not to exceed

 

$650,000.00.

 

     (2) As used in this section, "eligible taxpayer" means a

 

taxpayer that satisfies each of the following:

 

     (a) Is, collectively or individually, including through

 

affiliated companies, an owner, operator, manager, licensee,

 

lessee, or tenant of more than 1 facility or stadium in this state,

 

including grounds and ancillary facilities, that has a capacity of

 

at least 14,000 patrons per facility and is primarily used for

 

professional sporting events or other entertainment.

 

     (b) The owner, operator, manager, licensee, lessee, or tenant

 

as described in subdivision (a) has made a capital investment of

 

not less than $125,000,000.00, collectively or individually,

 

including through affiliated companies, into the construction cost

 

of a facility or stadium for which the taxpayer qualifies for this

 

credit.

 

     (c) The owner, operator, manager, licensee, lessee, or tenant

 

as described in subdivision (a) has not received proceeds from a

 

state appropriation or a public bond issue from a local unit of

 

government or public authority to assist in the construction or

 

debt retirement of the facility, excluding a tax abatement, other

 

waiver of a state or local tax or fee, or a state or local tax or

 

fee from a public entity for road or infrastructure assistance.

 

     Sec. 410a. (1) For tax years that begin on or after January 1,

 

2008 and end before January 1, 2013 2011, an eligible taxpayer may

 

claim a credit against the tax imposed by this act equal to the

 

following:

 

     (a) For the 2008 through 2010 tax years, 65% of the eligible

 

taxpayer's total tax liability imposed under this act not to exceed

 

$1,700,000.00.

 

     (b) For the 2011 tax year, 45% of the eligible taxpayer's

 

total tax liability imposed under this act not to exceed

 

$1,180,000.00.

 

     (c) For the 2012 tax year, 25% of the eligible taxpayer's

 

total tax liability imposed under this act not to exceed

 

$650,000.00.

 

     (2) As used in this section, "eligible taxpayer" means a

 

taxpayer that is, collectively or individually, including through

 

affiliated companies, an owner, operator, manager, licensee,

 

lessee, or tenant of more than 1 facility or stadium in this state,

 

including grounds and ancillary facilities, that has a capacity of

 

at least 14,000 patrons per facility and is primarily used for

 

professional sporting events or other entertainment, and that has

 

made a capital investment of not less than $250,000,000.00,

 

collectively or individually, including through affiliated

 

companies, into the construction cost of a facility or stadium for

 

which the taxpayer qualifies for this credit.

 

     Sec. 446. (1) Beginning in 2009 For the 2009 and 2010 tax

 

years, a qualified taxpayer may claim a credit against the tax

 

imposed by this act equal to the following:

 

     (a) In 2009, the qualified taxpayer's tax liability under this

 

act or $500,000.00, whichever is less.

 

     (b) In 2010, and each year thereafter, the qualified

 

taxpayer's tax liability under this act or $250,000.00, whichever

 

is less.

 

     (2) As used in this section, "qualified taxpayer" means a

 

taxpayer that owns, operates, or controls an exhibition in this

 

state that is open to the public and satisfies all of the

 

following:

 

     (a) Promotes, advertises, or displays the design or concept of

 

products that are designed, manufactured, or produced, in whole or

 

in part, in this state and are available for sale to the general

 

public.

 

     (b) The exhibition uses more than 100,000 square feet of floor

 

space.

 

     (c) Is open to the general public for at least 7 consecutive

 

days in a calendar year.

 

     (d) Attendance during the entire exhibition exceeds 500,000.

 

     (e) Has more than 3,000 credentialed journalists, including

 

international journalists, who attend the exhibition.

 

     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. 5249.

 

     (b) Senate Bill No.____ or House Bill No. 6104(request no.

 

04275'09).

 

     (c) Senate Bill No.____ or House Bill No. 6103(request no.

 

05669'09).

 

     (d) Senate Bill No.____ or House Bill No. 6105(request no.

 

05670'09).

 

     (e) Senate Bill No.____ or House Bill No. 6106(request no.

 

05671'09).

 

     (f) Senate Bill No.____ or House Bill No. 6107(request no.

 

05672'09).

 

     (g) Senate Bill No.____ or House Bill No. 6112(request no.

 

05673'09).

 

     (h) Senate Bill No.____ or House Bill No. 6113(request no.

 

05675'09*).

 

     (i) Senate Bill No.____ or House Bill No. 6109(request no.

 

05676'09).

 

     (j) Senate Bill No.____ or House Bill No. 6110(request no.

 

05677'09).

 

     (k) Senate Bill No.____ or House Bill No. 6116(request no.

 

05678'09).

 

     (l) Senate Bill No.____ or House Bill No. 6114(request no.

 

05679'09).

 

     (m) Senate Bill No.____ or House Bill No. 6117(request no.

 

05680'09).

 

     (n) Senate Bill No.____ or House Bill No. 6119(request no.

 

05930'10).

 

     (o) Senate Bill No.____ or House Bill No. 6111(request no.

 

05931'10).

 

     (p) Senate Bill No.____ or House Bill No. 6115(request no.

 

05932'10).

 

     (q) Senate Bill No.____ or House Bill No. 6118(request no.

 

05933'10).