Bill Text: MI HB5641 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Michigan business tax; credit; certain capital investments in this state; provide for. Amends 2007 PA 36 (MCL 208.1101 - 208.1601) by adding sec. 465.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-12-03 - Printed Bill Filed 12/03/2009 [HB5641 Detail]
Download: Michigan-2009-HB5641-Introduced.html
HOUSE BILL No. 5641
December 2, 2009, Introduced by Rep. Green and referred to the Committee on New Economy and Quality of Life.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 465.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 465. (1) Subject to the limitations provided under this
section, for tax years that begin after December 31, 2009 and end
before January 1, 2013, a qualified taxpayer that enters into an
agreement with the Michigan economic growth authority that provides
that the taxpayer will obtain financing to make qualified capital
investments in this state may claim a credit against the tax
imposed by this act equal to 50% of the interest expenses incurred
by the taxpayer during the tax year on that loan and for each tax
year thereafter for the life of that loan.
(2) The agreement required under subsection (1) shall specify
all of the following:
(a) The amount of the capital investment that will be made in
this state and for what purpose the capital investment will be
used.
(b) The name of the financial institution with which the
taxpayer has entered into a loan agreement to obtain financing to
make the capital investment described under subdivision (a).
(c) The total credit that may be claimed under this section.
(3) A taxpayer that claims the credit under this section shall
get a statement prepared by a certified public accountant verifying
that the actual amount of the loan and the interest rate on that
loan are the same as that amount used to calculate the credit under
this section. The taxpayer shall get the statement and attach that
statement to the annual return under this act on which the credit
under this section is claimed.
(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. The certificate required
under this section shall state all of the following:
(a) The taxpayer is a qualified taxpayer.
(b) The capital investment is a qualified capital investment.
(c) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(d) The total amount of capital investments made during the
tax year and the amount of the credit under this section for which
the taxpayer is allowed to claim for the designated tax year.
(5) If the credit allowed under this section for the tax year
and any unused carryforward allowed by this section exceed the
taxpayer's tax liability for the tax year, that portion that
exceeds the tax liability for the tax year 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.
(6) A taxpayer that claims a credit under this section shall
not claim a credit under any other section of this act based on the
same capital investment.
(7) As used in this section:
(a) "Capital investment" means the cost, including fabrication
and installation, paid or accrued in the tax year for property of a
type that is, or under the internal revenue code will become,
eligible for depreciation, amortization, or accelerated capital
cost recovery for federal income tax purposes, provided that the
property is physically located in this state for use in a business
activity in this state.
(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.
(c) "Property" means section 1245 property and section 1250
property as those terms are defined in sections 1245 and 1250 of
the internal revenue code.
(d) "Qualified capital investment" means a capital investment
made in this state that will stimulate the economy by creating jobs
and increasing spending in this state as determined by the Michigan
economic growth authority.
(e) "Qualified taxpayer" means a taxpayer that has entered
into an agreement to make a qualified capital investment in this
state prior to the issuance of a certificate under this section.
