Bill Text: MI HB4231 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Corporate income tax; credits; tax incentive for certain biomanufacturing projects; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding sec. 675.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-02-13 - Printed Bill Filed 02/13/2013 [HB4231 Detail]

Download: Michigan-2013-HB4231-Introduced.html

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HOUSE BILL No. 4231

 

February 12, 2013, Introduced by Rep. Ananich 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 206.713) by adding section 675.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 675. (1) A taxpayer that reequips, expands, or

 

establishes a manufacturing facility for the production of a

 

qualifying biobased product in this state may claim a credit

 

against the tax imposed by this part equal to 30% of the cost of

 

the taxpayer's qualified investment paid or accrued by the taxpayer

 

during the tax year with respect to that qualifying project.

 

     (2) The total amount of the credits allowed under this section

 

shall not exceed $12,000,000.00.

 

     (3) If the amount of the credit allowed under this section

 

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

 

portion that exceeds the tax liability of the taxpayer shall not be

 

refunded but may be carried forward to offset tax liability in

 

subsequent tax years for 10 years or until used up, whichever

 

occurs first.

 

     (4) As used in this section:

 

     (a) "Biobased content" means, with respect to any qualifying

 

biobased product, the amount of carbon from biological sources

 

contained in such product as determined by the testing of product

 

samples using the generally accepted methodology of the American

 

society of testing and materials D6866.

 

     (b) "Eligible property" means any tangible personal property

 

or other tangible property, but only if the other tangible property

 

is used as an integral part of the qualifying project, and the

 

property is necessary for the reequipment, expansion, or

 

establishment of a manufacturing facility for the production of a

 

qualifying biobased product and subject to depreciation.

 

     (c) "Qualified investment" means the basis of eligible

 

property placed in service by the taxpayer during the tax year

 

which is part of the qualifying project.

 

     (d) "Qualifying biobased product" means any product, including

 

a product that may be used as a petrochemical alternative, the

 

biobased content of which is not less than 25%. A qualifying

 

biobased product does not include any of the following:

 

     (i) Any product which is sold or used as food, feed, fuel, or

 

an ingredient thereof.

 

     (ii) Any product which is primarily composed of lignocellulosic

 

matter and which is sold or used as a paper or wood product, unless

 

such product is manufactured from either of the following:

 

     (A) Wood fiber harvested from lands certified as well managed

 

by any forest management certification program approved by the

 

federal government.

 

     (B) Wood fiber harvested from federal public lands, including

 

national forest system and bureau of land management lands, in

 

accordance with an approved land management project and a valid

 

timber sale or stewardship contract.

 

     (e) "Qualifying project" means a project to reequip, expand,

 

or establish a manufacturing facility for the production of a

 

qualifying biobased product in this state.