Bill Text: MI SB0855 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Michigan business tax; credits; credit for certain high-powered energy batteries; modify. Amends secs. 107, 117, 434, 500, 510 & 511 of 2007 PA 36 (MCL 208.1107 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-12-28 - Assigned Pa 0292'11 With Immediate Effect [SB0855 Detail]
Download: Michigan-2011-SB0855-Engrossed.html
SB-0855, As Passed Senate, December 8, 2011
SENATE BILL No. 855
November 29, 2011, Introduced by Senator KOWALL and referred to the Committee on Economic Development.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending sections 107 and 434 (MCL 208.1107 and 208.1434),
section 107 as amended by 2011 PA 209 and section 434 as amended by
2010 PA 114.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 107. (1) "Certificated credit" means any of the
following:
(a) A tax voucher certificate that has been issued to a
taxpayer under an agreement entered into before January 1, 2012
under section 419 or section 23 of the Michigan early stage venture
investment act of 2003, 2003 PA 296, MCL 125.2253.
(b) A credit for which a preapproval letter has been issued to
a qualified taxpayer under section 437 before January 1, 2012 to
the extent the credit has not been fully claimed or paid prior to
January 1, 2012.
(c)
A Except as otherwise
provided under subdivision (i), a
credit for which a taxpayer or a qualified taxpayer has entered
into an agreement with the Michigan economic growth authority under
sections 430, 431, 431a, 431b, 431c, 432, 434, or 450 before
January 1, 2012 to the extent the credit has not been fully claimed
or paid prior to January 1, 2012.
(d) A credit for which a taxpayer or eligible production
company has entered into an agreement with the Michigan film office
with the concurrence of the state treasurer under section 455 or
457 before January 1, 2012 to the extent the credit has not been
fully claimed or paid before January 1, 2012.
(e) A credit for which a qualified taxpayer has received a
part 2 approval, approved rehabilitation plan, approved high
community impact rehabilitation plan, or preapproval letter from
the state historic preservation office under section 435 before
January 1, 2012 to the extent the credit has not been fully claimed
or paid before January 1, 2012.
(f) A credit under section 433 but only for a taxpayer that
has a development agreement executed between a taxpayer and the
Michigan strategic fund before January 1, 2012 or for a taxpayer
that has entered into a qualified collaborative agreement under the
Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696, before January 1, 2012. As used in this subsection,
"qualified collaborative agreement" means that term as defined in
section 8d of the Michigan renaissance zone act, 1996 PA 376, MCL
125.2688d.
(g) A credit applicable to this act granted under section
36109 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.36109.
(h) A credit allowed a taxpayer under section 409 if the
taxpayer has met the capital expenditure requirements under section
409(4).
(i) A credit for which a taxpayer or a qualified taxpayer has
entered into an agreement with the Michigan economic growth
authority under section 434(6) before July 1, 2012.
(2) "Client" means an entity whose employment operations are
managed by a professional employer organization.
(3) "Compensation" means all wages, salaries, fees, bonuses,
commissions, other payments made in the tax year on behalf of or
for the benefit of employees, officers, or directors of the
taxpayers, and any earnings that are net earnings from self-
employment as defined under section 1402 of the internal revenue
code of the taxpayer or a partner or limited liability company
member of the taxpayer. Compensation includes, but is not limited
to, payments that are subject to or specifically exempt or excepted
from withholding under sections 3401 to 3406 of the internal
revenue code. Compensation also includes, on a cash or accrual
basis consistent with the taxpayer's method of accounting for
federal income tax purposes, payments to a pension, retirement, or
profit sharing plan other than those payments attributable to
unfunded accrued actuarial liabilities, and payments for insurance
for which employees are the beneficiaries, including payments under
health and welfare and noninsured benefit plans and payment of fees
for the administration of health and welfare and noninsured benefit
plans. Compensation for a taxpayer licensed under article 25 or 26
of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518 and
339.2601 to 339.2637, includes payments to an independent
contractor licensed under article 25 or 26 of the occupational
code, 1980 PA 299, MCL 339.2501 to 339.2518 and 339.2601 to
339.2637. Compensation does not include any of the following:
(a) Discounts on the price of the taxpayer's merchandise or
services sold to the taxpayer's employees, officers, or directors
that are not available to other customers.
(b) Except as otherwise provided in this subsection, payments
to an independent contractor.
(c) Payments to state and federal unemployment compensation
funds.
(d) The employer's portion of payments under the federal
insurance contributions act, chapter 21 of subtitle C of the
internal revenue code, 26 USC 3101 to 3128, the railroad retirement
tax act, chapter 22 of subtitle C of the internal revenue code, 26
USC 3201 to 3233, and similar social insurance programs.
(e) Payments, including self-insurance payments, for worker's
compensation insurance or federal employers' liability act
insurance pursuant to 45 USC 51 to 60.
(4) "Corporation" means a taxpayer that is required or has
elected to file as a corporation under the internal revenue code.
(5) "Department" means the department of treasury.
Sec. 434. (1) The Michigan economic growth authority is
authorized to enter into agreements to provide tax credits
available under this section to stimulate the domestic
commercialization and affordability of high-power energy batteries,
the lack of which today is limiting hybrid, plug-in hybrid battery-
electric, and fuel cell vehicle applications, and to help insure
that job growth from battery technology and commercial production
develops alongside advanced vehicle technology development and
renewable power generation initiatives both within and outside the
transportation sector.
(2) Subject to the limitations provided under this section,
for tax years that begin on or after January 1, 2010 and end before
January 1, 2015, a taxpayer that has entered into an agreement with
the Michigan economic growth authority that provides that the
taxpayer will manufacture plug-in traction battery packs in this
state may claim a credit against the tax imposed by this act for
the manufacture of those plug-in traction battery packs as provided
in this section. The Michigan economic growth authority may enter
into more than 1 agreement under this section. However, the total
number of plug-in traction battery packs eligible for all credits
under all agreements allowed under this section shall not exceed
the number of plug-in traction battery packs eligible for a credit
as provided in this section and at least 1 agreement shall make
capital investments of not less than $200,000,000.00 not later than
December 31, 2012. A taxpayer shall not claim a credit under this
section for more than 3 years. The total of all credits allowed
under this section shall be as follows:
(a) For tax years beginning after December 31, 2010 and ending
before January 1, 2012, $500.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $125.00 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours of battery capacity
not to exceed $2,000.00 for each plug-in traction battery pack. The
total number of traction battery packs shall not exceed 20,000
plug-in traction battery pack units under this subdivision, and the
total amount of credits allowed under this subdivision shall not
exceed $40,000,000.00.
(b) For tax years beginning after December 31, 2011 and ending
before January 1, 2013, $375.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $93.75 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours of battery capacity
not to exceed $1,500.00 for each plug-in traction battery pack. The
total number of traction battery packs shall not exceed 40,000
plug-in traction battery pack units under this subdivision, and the
total amount of credits allowed under this subdivision shall not
exceed $43,000,000.00. A single taxpayer shall not claim a credit
for more than 25,000 plug-in traction battery pack units under this
subdivision. The number of battery pack units not used for credits
under subdivision (a) may be added to the total number of battery
pack units for which a credit is available under this subdivision,
and the credits for those units shall be calculated as described in
subdivision (a) and shall be in addition to the maximums allowed
for any 1 taxpayer under this subdivision or the total limits
allowed under this subdivision.
(c) For tax years beginning after December 31, 2012 and ending
before January 1, 2014, $375.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $93.75 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours not to exceed
$1,500.00 for each plug-in traction battery pack. The total number
of traction battery packs shall not exceed 40,000 plug-in traction
battery pack units under this subdivision, and the total amount of
credits allowed under this subdivision shall not exceed
$43,000,000.00. A single taxpayer shall not claim a credit for more
than 25,000 plug-in traction battery pack units under this
subdivision.
(d) For tax years beginning after December 31, 2013 and ending
before January 1, 2015, $375.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $93.75 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours not to exceed
$1,500.00 for each plug-in traction battery pack. The total number
of traction battery packs shall not exceed 25,000 plug-in traction
battery pack units under this subdivision, and the total amount of
credits allowed under this subdivision shall not exceed
$9,000,000.00.
(3) For tax years that begin on or after January 1, 2012 and
subject to the limitations of this subsection, a taxpayer may claim
a credit of up to 75% of the qualified expenses for vehicle
engineering in this state to support battery integration,
prototyping, and launch expenses incurred for tax years that begin
on or after January 1, 2009 and end before January 1, 2014. This
credit shall not exceed $15,000,000.00 per year as agreed to and
certified by the Michigan economic growth authority. Any expenses
for which a credit is claimed under this subsection shall not be
included in costs and expenses used for credits available under
sections 403 and 405. The Michigan economic growth authority may
not authorize more than $135,000,000.00 in total credits to all
taxpayers under this subsection. To claim the credit under this
subsection, a taxpayer must manufacture a cumulative total of at
least 1,000 motor vehicles that would qualify for the credit under
section 30D of the internal revenue code and the credit shall be
available to the taxpayer only for the following percentages of the
total authorized annual expenses:
(a) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 1,000 motor vehicles and fewer than
2,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 20%.
(b) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 2,000 motor vehicles but fewer than
3,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 40%.
(c) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 3,000 motor vehicles but fewer than
4,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 60%.
(d) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 4,000 motor vehicles but fewer than
5,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 80%.
(e) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 5,000 motor vehicles that qualify for
the credit under section 30D of the internal revenue code, 100%.
(4) For tax years that begin on or after January 1, 2012 and
end before January 1, 2015, a taxpayer that has entered into an
agreement with the Michigan economic growth authority that provides
that the taxpayer will increase its engineering activities in this
state for advanced automotive battery technologies may claim a
credit under this subsection. A taxpayer's qualified advanced
battery engineering expenses for advanced automotive battery
technologies shall exceed those expenses for the taxpayer's 2008
fiscal year to qualify for the credit under this subsection. The
Michigan economic growth authority may enter into not more than 1
agreement for advanced battery engineering credits, and the total
value of credits available under this subsection is limited to
$30,000,000.00. The credits under this subsection shall be allowed
as follows:
(a) Up to 75% of the total dollar amount of the qualified
advanced battery engineering expenses of an authorized business
incurred during tax years beginning on or after January 1, 2009 and
ending before January 1, 2014. The taxpayer must submit to the
Michigan economic growth authority an affidavit certifying the
amount of qualified advanced battery engineering expenses for each
year.
(b) Notwithstanding any other provision of this section, a
taxpayer may claim no more than $10,000,000.00 in credits under
this subsection in any tax year.
(c) The credits available under this subsection shall not be
allowed if the taxpayer claims credits under subsection (2) for
battery pack assembly for the tax year. Notwithstanding this
limitation, the credits available under this subsection are in
addition to any other incentives which may be authorized under the
Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to
207.810, for other related or unrelated projects including the
vehicle research and development expenses authorized under
subsection (3). Any expenses for which a credit is claimed under
this subsection shall not be included in costs and expenses used
for credits available under sections 403 and 405.
(5) A taxpayer that has entered into an agreement with the
Michigan economic growth authority may claim a credit equal to 50%
of the capital investment expenses for any tax year for the
construction of an integrative cell manufacturing facility that
includes anode and cathode manufacturing and cell assembly if the
taxpayer will create not less than 300 new jobs in this state. Not
more than 5 agreements may be entered into under this section, and
the maximum allowable credit under each agreement shall not exceed
$25,000,000.00 per year for no more than 4 years. No credit shall
be claimed in a tax year beginning before 2012. However, tax
credits may be based on expenses incurred in this state in prior
years. The Michigan economic growth authority shall not adopt a
resolution authorizing an agreement to provide credits under this
subsection after March 31, 2010.
(6)
A Subject to the
limitations under this subsection, a
taxpayer that has entered into an agreement with the Michigan
economic growth authority may claim a credit equal to 25% of the
capital investment expenses for any tax year for the construction
of
a facility that will produce large scale batteries and
Senate Bill No. 855 as amended December 7, 2011
manufacture
integrated power management, smart control, and storage
systems
from 500 kilowatts to 100 megawatts at least 1 or more of
the following: batteries, battery components, storage systems,
battery thermal and management components or systems, AC or DC
power supplies, power electronics, battery formation and test
equipment, or energy conversion devices including components
related to such products of various sizes and capacities if the
taxpayer
will agrees to create not fewer than 500 750 new
jobs in
this
state <<and the taxpayer has received conventional financing,
recovery zone facility bonds, or federal loan guarantees
for a
project that employs innovative energy efficiency,
renewable
energy, and advanced transmission and distribution
technologies
from the United States department of energy under section
1703 of
title XVII of the energy policy act of 2005, 42 USC 16513.
.>> Not more than 1
agreement may be entered into under this subsection for a total
credit of not more than $50,000,000.00 over 4 years, and the
maximum allowable credit under the agreement shall not exceed
$25,000,000.00
per year. for no more than 4 years. No credit shall
be claimed in a tax year beginning before 2012. The Michigan
economic growth authority shall not adopt a resolution authorizing
an
agreement to provide a credit under this subsection after March
1,
2010.June 30, 2012.
(7) Subject to the limitations under subsection (8), for tax
years that begin on or after January 1, 2012 and end before January
1, 2017, a taxpayer that has entered into an agreement with the
Michigan economic growth authority that provides that the taxpayer
will manufacture advanced lithium ion battery packs in this state
may claim a credit against the tax imposed by this act for the
manufacture of those advanced lithium ion battery packs as follows:
(a) For a taxpayer that agrees to make capital investments in
this state of not less than $250,000,000.00, to create at least
1,000 new jobs that shall include jobs that are transferred to this
state from a foreign country, and to manufacture not less than
225,000 advanced lithium ion battery packs in this state, a total
credit of not more than $26,000,000.00 per tax year for no more
than 3 tax years. The Michigan economic growth authority shall not
adopt a resolution authorizing an agreement under this subdivision
after March 1, 2010.
(b) For a taxpayer that agrees to make capital investments in
this state of not less than $200,000,000.00 and to create at least
300 new jobs, a total credit of not more than $42,000,000.00 over 4
consecutive tax years unless otherwise provided under subsection
(10). Unless the Michigan economic growth authority determines that
there are previously issued credits authorized under subsection (6)
available or that there are credits available under subsection
(7)(a) for additional credits under this subdivision, the Michigan
economic growth authority shall not adopt a resolution authorizing
an agreement under this subdivision after March 1, 2010.
(8) Any capital investments made, jobs created, or expenses
incurred pursuant to an agreement entered for a credit under
subsection (7) or (9) shall be in addition to any other capital
investments, jobs, or expenses used for any other credit available
under this section and shall not be included or used for a credit
available under any subsection other than subsection (7) or (9),
respectively. A taxpayer that claims a credit under subsection
(7)(a) shall not claim an additional credit under subsection
(7)(b). For purposes of subsection (7), "new job" means a full-time
job created by a taxpayer related to its advanced lithium ion
battery activities, including its battery pack assembly facility, a
cell manufacturing facility, and a motor vehicle assembly facility
at which the battery pack is installed in a motor vehicle, or
related battery engineering, that is in excess of the number of
active full-time jobs the taxpayer maintained in this state prior
to the effective date of the amendatory act that added this
subsection as determined by the Michigan economic growth authority.
(9) Subject to the limitations of this subsection, if the
Michigan economic growth authority determines that there are
previously issued credits authorized under subsection (6)
available, then for tax years that begin on or after January 1,
2015 and end before January 1, 2017 a taxpayer may claim a credit
of up to 75% of the costs incurred during each tax year that begins
on or after January 1, 2013 and ends before January 1, 2016 to
implement a sourcing program to utilize battery cells from a
business that has entered into an agreement under subsection (5)
for the construction of an integrative cell manufacturing facility.
Costs eligible for the credit under this subsection shall include
payments for battery pack and vehicle engineering and associated
design or integration including prototyping, facility, equipment or
component retooling, and vehicle regulatory certification and shall
include costs such as direct labor, purchases of capital equipment
at cost, expensed supplies, intellectual property licensing,
services, and financing, as determined and certified by the
Michigan economic growth authority. Any costs for which a credit is
claimed under this subsection shall not be included in costs and
expenses used for credits available under sections 403 and 405. The
Michigan economic growth authority may enter into more than 1
agreement under this subsection. The Michigan economic growth
authority shall not authorize more than an amount equal to 25% of
the previously issued credits available under subsection (6) as
determined under subsection (10) in total credits to all taxpayers
under this subsection. A single taxpayer shall not claim a credit
of more than $12,500,000.00 per year for no more than 2 years. To
claim the credit under this subsection, a taxpayer must manufacture
at least 10,000 motor vehicles in each year a credit is claimed at
a facility in this state at which some of the costs eligible for a
credit under this subsection are or were incurred. An agreement
entered into under this subsection shall contain a repayment
provision that if the taxpayer relocates its battery pack assembly
facility for which credits are taken under subsection (7) outside
of this state during the term of the agreement or subsequently
substantially fails to meet the requirements of the agreement, as
determined by the Michigan economic growth authority, the taxpayer
shall have its credit reduced or terminated or have a percentage of
the amount previously claimed under this subsection added back to
the tax liability of the taxpayer in the year that the taxpayer
fails to comply with the agreement.
(10) If the Michigan economic growth authority determines that
there are previously issued credits authorized under subsection (6)
available, an amount equal to 25% of those previously issued
credits may be used by the authority to enter into agreements for
which a credit may be claimed under subsection (9) and an amount
equal to 25% of those previously issued credits may be used by the
authority to enter into additional agreements for which a credit
may be claimed under subsection (7)(b). If the Michigan economic
growth authority approves a total of less than $78,000,000.00 in
credits under subsection (7)(a), the Michigan economic growth
authority may use the difference between $78,000,000.00 and the
total amount of credits approved under subsection (7)(a) to approve
additional credits under subsection (7)(b). As used in this
subsection and subsections (7) and (9), "previously issued credits"
means the total amount of credits authorized by the authority for a
taxpayer under subsection (6) that meets all of the following:
(a) The taxpayer did not use any or a portion of the credits
authorized under the written agreement under subsection (6).
(b) The authority determined at a meeting upon a vote of the
majority of the members present that the credits previously
authorized satisfy subdivision (a).
(11) The Michigan economic growth authority shall appoint a
review board to advise it about decisions concerning credits under
subsection (5). The review board shall be composed of not fewer
than 2 independent scientists. Additional experts may be sought on
an ad hoc basis to review business plans and addressable markets.
In making its recommendations, the review board shall give
preference to technologies presenting novel materials,
manufacturing, and performance qualities. The review board shall
also consider all of the following:
(a) Business activities related to advanced battery technology
occurring exclusively in Michigan.
(b) Activities directly related to whole cell production, from
materials to large format cells, in Michigan.
(c) Scalability of manufacturing processes that are
established, are robust, and address strategic global automotive
market requirements.
(12) Credits under this section shall be taken after
nonrefundable credits available under this act. If a credit or the
sum of credits allowed under this section exceeds the tax liability
of the taxpayer for the tax year, the taxpayer may elect to have
that portion that exceeds the tax liability of the taxpayer
refunded or to have the excess carried forward to offset tax
liability in subsequent tax years for 10 years or until used up,
whichever occurs first. Amounts carried forward shall not affect
the maximum amount of credits that may be claimed in subsequent
years.
(13) An agreement entered into for tax credits under this
section shall specify all of the following:
(a) For credits provided under subsection (2), the number of
plug-in traction battery packs eligible for a credit for each tax
year covered by the period of the agreement and the maximum amount
of the credit that may be claimed by the taxpayer in each tax year.
(b) If the taxpayer claims a credit under subsection (3), the
qualified expenses for vehicle engineering, prototype, and launch
costs and the annual and total dollar amount of the credits that
may be claimed under subsection (3).
(c) If the taxpayer claims a credit under subsection (4), the
total dollar amount of the credits that may be claimed under
subsection (4).
(d) If a taxpayer claims a credit under subsection (5), all of
the following:
(i) The location of the facility.
(ii) The estimated total cost of the facility.
(iii) The capital investment expenses that qualify for the
credit under subsection (5).
(iv) The annual and total dollar amount of the credits that may
be claimed under subsection (5).
(v) A repayment provision that if the taxpayer subsequently
substantially fails to meet certain requirements of the agreement,
as determined by the Michigan economic growth authority, the
taxpayer may have its credit reduced or terminated or have a
percentage of the amount previously claimed under subsection (5)
added back to the tax liability of the taxpayer in the year that
the taxpayer fails to comply with the agreement.
(e) If a taxpayer claims a credit under subsection (6), all of
the following:
(i) The location of the facility.
(ii) The estimated total cost of the facility.
(iii) The capital investment expenses that qualify for the
credit under subsection (6).
(iv) The annual and total dollar amount of the credits that may
be claimed under subsection (6).
(v) The minimum number of new jobs to be created in this state
each year to qualify for the credit under subsection (6).
(vi) A repayment provision that if the taxpayer subsequently
substantially fails to meet certain requirements of the agreement,
as determined by the Michigan economic growth authority, the
taxpayer may have its credit reduced or terminated or have a
percentage of the amount previously claimed under subsection (6)
added back to the tax liability of the taxpayer in the year that
the taxpayer fails to comply with the agreement.
(vii) A provision that if the taxpayer fails to create 750 new
jobs the taxpayer shall have its credit reduced by $65,000.00 for
each job less than 750 that was not created and that if the
taxpayer fails to create at least 500 new jobs a provision
regarding an additional clawback of any credit or benefit received
pursuant to the agreement.
(f) If a taxpayer claims a credit under subsection (7), all of
the following:
(i) A provision that the taxpayer agrees to make a good faith
effort to utilize Michigan suppliers and vendors when purchasing
components and services related to the production of advanced
lithium ion battery packs for which a credit is claimed in the
2012, 2013, and 2014 tax years. For a credit during the 2015 and
2016 tax years, a provision that the taxpayer shall utilize cells
from a business that has entered into an agreement under subsection
(5) for the construction of an integrative cell manufacturing
facility.
(ii) A repayment provision that if the taxpayer relocates its
advanced lithium ion battery pack assembly facility that produces
the battery pack units for which the credit is claimed under
subsection (7) outside of this state during the term of the
agreement or subsequently fails to meet the capital investment or
new jobs requirements of the agreement entered into for a credit
under subsection (7), as determined by the Michigan economic growth
authority, the taxpayer shall have a percentage of the amount
previously claimed under subsection (7) added back to the tax
liability of the taxpayer in the year that the taxpayer fails to
comply with the agreement entered into for a credit under
subsection (7) and shall have its credit terminated or reduced
prospectively.
(iii) The minimum number of advanced lithium ion battery packs
to be manufactured to be eligible for a credit for each tax year
covered by the period of the agreement and the maximum amount of
the credit that may be claimed by the taxpayer in each tax year.
(iv) The capital investment that qualifies for the credit under
subsection (7).
(v) The minimum number of new jobs to be created in this state
to qualify for the credit under subsection (7).
(14) 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 subsection shall state all of the following:
(a) The taxpayer is located in this state and engaged in
activity that qualifies for the credit under this section.
(b) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the taxpayer
and, for a taxpayer that is a unitary business group, the federal
employer identification number or Michigan department of treasury
number assigned to the member of the group engaged in this state in
activity that qualifies for a credit under this section.
(c) If applicable, the number of plug-in traction battery pack
units or advanced lithium ion battery pack units manufactured by
the taxpayer during the designated tax year and the amount of the
credit under this section for which the taxpayer is allowed to
claim for the designated tax year.
(d) For credits available under subsections (3), (4), (5),
(6), (7), and (9), the amount of the credit available for the tax
year and such other information as may be required by the
department.
(15) As used in this section:
(a) "Advanced automotive battery technology" means a
rechargeable lithium battery that supports vehicle propulsion or
other advanced technologies as may be further defined by the
Michigan economic growth authority.
(b) "Advanced lithium ion battery pack" means an assembled
unit of battery cells containing rechargeable lithium ion chemistry
designed and mass-produced for the purpose of transportation,
including defense and commercial applications.
(c) "Battery cell" means the basic electrochemical unit that
provides a source of electrical energy by direct conversion of
chemical energy and consists of an assembly of electrodes,
separators, electrolyte, container, and terminals.
(d) "Capital investment" means expenses incurred during the
tax year and included in an agreement under this section that are
associated with facilities, equipment, tooling and engineering, and
manufacturing, including salaries, contract services, taxes,
utilities, raw materials, and supplies.
(e) "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.
(f) "Plug-in traction battery pack" means an electrochemical
energy storage device that meets the following requirements:
(i) Has a traction battery capacity of not less than 4.0
kilowatt hours.
(ii) Is equipped with an electrical plug by means of which it
can be energized and recharged when plugged into an external source
of power.
(iii) Consists of standardized configuration and is mass-
produced.
(iv) Has been tested and approved by the national highway
transportation safety administration as compliant with applicable
motor vehicle and motor vehicle equipment safety standards when
installed by a mechanic with standardized training in protocols
established by the manufacturer as part of a nationwide
distribution program.
(v) Is installed in a new qualified plug-in electric drive
motor vehicle that qualifies for the credit under section 30D of
the internal revenue code.
(g) "Qualified advanced battery engineering expenses" means
that part of a taxpayer's qualified research expenses as defined
under section 41(b) of the internal revenue code related to
engineering research and development related to advanced automotive
battery technology.
(h) "Qualified expenses for vehicle engineering" means that
part of a taxpayer's expenses for activities within this state
related to integrating batteries into a motor vehicle that would
qualify for the credit under section 30D of the internal revenue
code including such qualified research expenses as defined under
section 41(b) of the internal revenue code.
(i) "Traction battery capacity" is the number of kilowatt
hours measured from a 100% state of charge to a 0% state of charge.
