Bill Text: MI SB0944 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Michigan business tax; credit; historic rehabilitation credit for combined rehabilitation plans; allow. Amends sec. 435 of 2007 PA 36 (MCL 208.1435).
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Passed) 2010-12-29 - Assigned Pa 0310'10 With Immediate Effect [SB0944 Detail]
Download: Michigan-2009-SB0944-Engrossed.html
SB-0944, As Passed Senate, December 3, 2009
SUBSTITUTE FOR
SENATE BILL NO. 944
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 435 (MCL 208.1435), as amended by 2009 PA 141.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 435. (1) A qualified taxpayer with a rehabilitation plan
certified after December 31, 2007 or a qualified taxpayer that has
a rehabilitation plan certified before January 1, 2008 under
section 39c of former 1975 PA 228 for the rehabilitation of an
historic resource for which a certification of completed
rehabilitation has been issued after the end of the taxpayer's last
tax year may credit against the tax imposed by this act the amount
determined pursuant to subsection (2) for the qualified
expenditures for the rehabilitation of an historic resource
pursuant to the rehabilitation plan in the year in which the
certification of completed rehabilitation of the historic resource
is issued. Only those expenditures that are paid or incurred during
the time periods prescribed for the credit under section 47(a)(2)
of the internal revenue code and any related treasury regulations
shall be considered qualified expenditures.
(2) The credit allowed under this subsection shall be 25% of
the qualified expenditures that are eligible, or would have been
eligible except that the taxpayer entered into an agreement under
subsection (13), for the credit under section 47(a)(2) of the
internal revenue code if the taxpayer is eligible for the credit
under section 47(a)(2) of the internal revenue code or, if the
taxpayer is not eligible for the credit under section 47(a)(2) of
the internal revenue code, 25% of the qualified expenditures that
would qualify under section 47(a)(2) of the internal revenue code
except that the expenditures are made to an historic resource that
is not eligible for the credit under section 47(a)(2) of the
internal revenue code, subject to both of the following:
(a) A taxpayer with qualified expenditures that are eligible
for the credit under section 47(a)(2) of the internal revenue code
may not claim a credit under this section for those qualified
expenditures unless the taxpayer has claimed and received a credit
for those qualified expenditures under section 47(a)(2) of the
internal revenue code or the taxpayer has entered into an agreement
under subsection (13).
(b) A credit under this subsection shall be reduced by the
amount of a credit received by the taxpayer for the same qualified
expenditures under section 47(a)(2) of the internal revenue code.
(3) To be eligible for the credit under subsection (2), the
taxpayer
shall apply to and receive from the Michigan historical
center
certification state housing
development authority that the
historic significance, the rehabilitation plan, and the completed
rehabilitation of the historic resource meet the criteria under
subsection (6) and either of the following:
(a) All of the following criteria:
(i) The historic resource contributes to the significance of
the historic district in which it is located.
(ii) Both the rehabilitation plan and completed rehabilitation
of the historic resource meet the federal secretary of the
interior's standards for rehabilitation and guidelines for
rehabilitating historic buildings, 36 CFR part 67.
(iii) All rehabilitation work has been done to or within the
walls, boundaries, or structures of the historic resource or to
historic resources located within the property boundaries of the
property.
(b) The taxpayer has received certification from the national
park service that the historic resource's significance, the
rehabilitation plan, and the completed rehabilitation qualify for
the credit allowed under section 47(a)(2) of the internal revenue
code.
(4) If a qualified taxpayer is eligible for the credit allowed
under section 47(a)(2) of the internal revenue code, the qualified
taxpayer
shall file for certification with the center MSHDA to
qualify for the credit allowed under section 47(a)(2) of the
internal revenue code. If the qualified taxpayer has previously
filed
for certification with the center authority to qualify for
the credit allowed under section 47(a)(2) of the internal revenue
code, additional filing for the credit allowed under this section
is not required.
(5)
The center authority may inspect an historic resource at
any time during the rehabilitation process and may revoke
certification of completed rehabilitation if the rehabilitation was
not undertaken as represented in the rehabilitation plan or if
unapproved alterations to the completed rehabilitation are made
during the 5 years after the tax year in which the credit was
claimed.
The center authority shall promptly notify the department
of a revocation.
(6) Qualified expenditures for the rehabilitation of an
historic resource may be used to calculate the credit under this
section if the historic resource meets 1 of the criteria listed in
subdivision (a) and 1 of the criteria listed in subdivision (b):
(a) The resource is 1 of the following during the tax year in
which a credit under this section is claimed for those qualified
expenditures:
(i) Individually listed on the national register of historic
places or state register of historic sites.
(ii) A contributing resource located within an historic
district listed on the national register of historic places or the
state register of historic sites.
(iii) A contributing resource located within an historic
district designated by a local unit pursuant to an ordinance
adopted under the local historic districts act, 1970 PA 169, MCL
399.201 to 399.215.
(b) The resource meets 1 of the following criteria during the
tax year in which a credit under this section is claimed for those
qualified expenditures:
(i) The historic resource is located in a designated historic
district in a local unit of government with an existing ordinance
under the local historic districts act, 1970 PA 169, MCL 399.201 to
399.215.
(ii) The historic resource is located in an incorporated local
unit of government that does not have an ordinance under the local
historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and
has a population of less than 5,000.
(iii) The historic resource is located in an unincorporated
local unit of government.
(iv) The historic resource is located in an incorporated local
unit of government that does not have an ordinance under the local
historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and is
located within the boundaries of an association that has been
chartered under 1889 PA 39, MCL 455.51 to 455.72.
(v) The historic resource is subject to a historic
preservation easement.
(7) For projects for which a certificate of completed
rehabilitation is issued for a tax year beginning before January 1,
2009, if a qualified taxpayer is a partnership, limited liability
company, or subchapter S corporation, the qualified taxpayer may
assign all or any portion of a credit allowed under this section to
its partners, members, or shareholders, based on the partner's,
member's, or shareholder's proportionate share of ownership or
based on an alternative method approved by the department. A credit
assignment under this subsection is irrevocable and shall be made
in the tax year in which a certificate of completed rehabilitation
is issued. A qualified taxpayer may claim a portion of a credit and
assign the remaining credit amount. A partner, member, or
shareholder that is an assignee shall not subsequently assign a
credit or any portion of a credit assigned to the partner, member,
or shareholder under this subsection. A credit amount assigned
under this subsection may be claimed against the partner's,
member's, or shareholder's tax liability under this act or under
the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532. A
credit assignment under this subsection shall be made on a form
prescribed by the department. The qualified taxpayer and assignees
shall attach a copy of the completed assignment form to the
department in the tax year in which the assignment is made and
attach a copy of the completed assignment form to the annual return
required to be filed under this act for that tax year.
(8) For projects for which a certificate of completed
rehabilitation is issued for a tax year beginning after December
31, 2008, a qualified taxpayer may assign all or any portion of the
credit allowed under this section. A credit assignment under this
subsection is irrevocable and shall be made in the tax year in
which a certificate of completed rehabilitation is issued. A
qualified taxpayer may claim a portion of a credit and assign the
remaining amount. If the qualified taxpayer both claims and assigns
portions of the credit, the qualified taxpayer shall claim the
portion it claims in the tax year in which a certificate of
completed rehabilitation is issued pursuant to this section. An
assignee may subsequently assign the credit or any portion of the
credit assigned under this subsection to 1 or more assignees. An
assignment or subsequent reassignment of a credit can be made in
the year the certificate of completed rehabilitation is issued. A
credit assignment or subsequent reassignment under this section
shall be made on a form prescribed by the department. The
department or its designee shall review and issue a completed
assignment or reassignment certificate to the assignee or
reassignee. A credit amount assigned under this subsection may be
claimed against the assignees' tax under this act or under the
income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532. An
assignee or subsequent reassignee shall attach a copy of the
completed assignment certificate to the annual return required to
be filed under this act or under the income tax act of 1967, 1967
PA 281, MCL 206.1 to 206.532, for the tax year in which the
assignment or reassignment is made and the assignee or reassignee
first claims the credit, which shall be the same tax year.
(9) If the credit allowed under this section for the tax year
and any unused carryforward of the credit 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. If a qualified taxpayer has an unused carryforward of
a credit under this section, the amount otherwise added under
subsection (10), (11), or (12) to the qualified taxpayer's tax
liability may instead be used to reduce the qualified taxpayer's
carryforward under this section. An unused carryforward of a credit
under section 39c of former 1975 PA 228 that was unused at the end
of the last tax year for which former 1975 PA 228 was in effect may
be claimed against the tax imposed under this act for the years the
carryforward would have been available under section 39c of former
1975 PA 228. For projects for which a certificate of completed
rehabilitation is issued for a tax year beginning after December
31, 2008 and for which the credit amount allowed is less than
$250,000.00, a qualified taxpayer may elect to forgo the carryover
period and receive a refund of the amount of the credit that
exceeds the qualified taxpayer's tax liability. The amount of the
refund shall be equal to 90% of the amount of the credit that
exceeds the qualified taxpayer's tax liability. An election under
this subsection shall be made in the year that a certificate of
completed rehabilitation is issued and shall be irrevocable.
(10) For tax years beginning before January 1, 2009, if the
taxpayer sells an historic resource for which a credit was claimed
under this section or under section 39c of former 1975 PA 228 less
than 5 years after the year in which the credit was claimed, the
following percentage of the credit amount previously claimed
relative to that historic resource shall be added back to the tax
liability of the taxpayer in the year of the sale:
(a) If the sale is less than 1 year after the year in which
the credit was claimed, 100%.
(b) If the sale is at least 1 year but less than 2 years after
the year in which the credit was claimed, 80%.
(c) If the sale is at least 2 years but less than 3 years
after the year in which the credit was claimed, 60%.
(d) If the sale is at least 3 years but less than 4 years
after the year in which the credit was claimed, 40%.
(e) If the sale is at least 4 years but less than 5 years
after the year in which the credit was claimed, 20%.
(f) If the sale is 5 years or more after the year in which the
credit was claimed, an addback to the taxpayer's tax liability
shall not be made.
(11) For tax years beginning before January 1, 2009, if a
certification of completed rehabilitation is revoked under
subsection (5) less than 5 years after the year in which a credit
was claimed under this section or under section 39c of former 1975
PA 228, the following percentage of the credit amount previously
claimed relative to that historic resource shall be added back to
the tax liability of the taxpayer in the year of the revocation:
(a) If the revocation is less than 1 year after the year in
which the credit was claimed, 100%.
(b) If the revocation is at least 1 year but less than 2 years
after the year in which the credit was claimed, 80%.
(c) If the revocation is at least 2 years but less than 3
years after the year in which the credit was claimed, 60%.
(d) If the revocation is at least 3 years but less than 4
years after the year in which the credit was claimed, 40%.
(e) If the revocation is at least 4 years but less than 5
years after the year in which the credit was claimed, 20%.
(f) If the revocation is 5 years or more after the year in
which the credit was claimed, an addback to the taxpayer's tax
liability shall not be made.
(12) Except as otherwise provided under subsection (13), for
tax years beginning after December 31, 2008, if a certificate of
completed rehabilitation is revoked under subsection (5), a
preapproval letter is revoked under subsection (23)(b), or an
historic resource is sold or disposed of less than 5 years after
the historic resource is placed in service as defined in section
47(b)(1) of the internal revenue code and related treasury
regulations or if a certificate of completed rehabilitation issued
after December 1, 2008 is revoked under subsection (5) during a tax
year beginning after December 31, 2008, a preapproval letter issued
after December 1, 2008 is revoked under subsection (23)(b) during a
tax year beginning after December 31, 2008, or an historic resource
is sold or disposed of less than 5 years after the historic
resource is placed in service during a tax year beginning after
December 31, 2008, the following percentage of the credit amount
previously claimed relative to that historic resource shall be
added back to the tax liability of the qualified taxpayer that
received the certificate of completed rehabilitation and not the
assignee in the year of the revocation:
(a) If the revocation is less than 1 year after the historic
resource is placed in service, 100%.
(b) If the revocation is at least 1 year but less than 2 years
after the historic resource is placed in service, 80%.
(c) If the revocation is at least 2 years but less than 3
years after the historic resource is placed in service, 60%.
(d) If the revocation is at least 3 years but less than 4
years after the historic resource is placed in service, 40%.
(e) If the revocation is at least 4 years but less than 5
years after the historic resource is placed in service, 20%.
(f) If the revocation is at least 5 years or more after the
historic resource is placed in service, an addback to the qualified
taxpayer tax liability shall not be required.
(13) Subsection (12) shall not apply if the qualified taxpayer
enters
into a written agreement with the state historic
preservation
office MSHDA that will allow for the transfer or sale
of the historic resource and provides the following:
(a) Reasonable assurance that subsequent to the transfer the
property will remain a historic resource during the 5-year period
after the historic resource is placed in service.
(b) A method that the department can recover an amount from
the taxpayer equal to the appropriate percentage of credit added
back as described under subsection (12).
(c) An encumbrance on the title to the historic resource being
sold or transferred, stating that the property must remain a
historic resource throughout the 5-year period after the historic
resource is placed in service.
(d) A provision for the payment by the taxpayer of all legal
and professional fees associated with the drafting, review, and
recording of the written agreement required under this subsection.
(14)
The department of history, arts, and libraries through
the
Michigan historical center MSHDA
may impose a fee to cover the
administrative cost of implementing the program under this section.
(15) The qualified taxpayer shall attach all of the following
to the qualified taxpayer's annual return required under this act
or under the income tax act of 1967, 1967 PA 281, MCL 206.1 to
206.532, if applicable, on which the credit is claimed:
(a) Certification of completed rehabilitation.
(b) Certification of historic significance related to the
historic resource and the qualified expenditures used to claim a
credit under this section.
(c) A completed assignment form if the qualified taxpayer or
assignee has assigned any portion of a credit allowed under this
section or if the taxpayer is an assignee of any portion of a
credit allowed under this section.
(16)
The department of history, arts, and libraries shall
MSHDA may promulgate rules to implement this section pursuant to
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
(17) The total of the credits claimed under subsection (2) and
section 266 of the income tax act of 1967, 1967 PA 281, MCL
206.266, for a rehabilitation project shall not exceed 25% of the
total qualified expenditures eligible for the credit under
subsection (2) for that rehabilitation project.
(18)
The department of history, arts, and libraries through
the
Michigan historical center MSHDA
shall report all of the
following to the legislature annually for the immediately preceding
state fiscal year:
(a)
The fee schedule used by the center authority and the
total amount of fees collected.
(b) A description of each rehabilitation project certified.
(c) The location of each new and ongoing rehabilitation
project.
(19) In addition to the credit allowed under subsection (2)
and subject to the criteria under this subsection and subsections
(21), (22), and (23), for tax years that begin on and after January
1, 2009 a qualified taxpayer that has a preapproval letter issued
on or before December 31, 2013 may claim an additional credit that
has been approved under this subsection or subsection (20) against
the tax imposed by this act equal to a percentage established in
the taxpayer's preapproval letter of the qualified taxpayer's
qualified expenditures for the rehabilitation of an historic
resource or the actual amount of the qualified taxpayer's qualified
expenditures incurred during the completion of the rehabilitation
of an historic resource, whichever is less. The total amount of all
additional credits approved under this subsection shall not exceed
$8,000,000.00 in calendar year ending December 31, 2009;
$9,000,000.00 in calendar year ending December 31, 2010;
$10,000,000.00 in calendar year ending December 31, 2011;
$11,000,000.00 in calendar year ending December 31, 2012; and
$12,000,000.00 in calendar year ending December 31, 2013 and,
except as otherwise provided under this subsection, at least, 25%
of the allotted amount for additional credits approved under this
subsection during each calendar year shall be allocated to
rehabilitation plans that have $1,000,000.00 or less in qualified
expenditures. On October 1 of each calendar year, if the total of
all credits approved under subdivision (a) for the calendar year is
less than the minimum allotted amount, the department of history,
arts, and libraries may use the remainder of that allotted amount
to approve applications for additional credits submitted under
subdivision (b) for that calendar year. To be eligible for the
additional credit under this subsection, the taxpayer shall apply
to and receive a preapproval letter and comply with the following:
(a) For a rehabilitation plan that has $1,000,000.00 or less
in qualified expenditures, the taxpayer shall apply to the
department
of history, arts, and libraries MSHDA
for approval of
the additional credit under this subsection. Subject to the
limitation
provided under this subsection, the director of the
department
of history, arts, and libraries or his or her designee
authority is authorized to approve an application under this
subdivision and determine the percentage of at least 10% but not
more than 15% of the taxpayer's qualified expenditures for which he
or
she may claim an additional credit. If the director of the
department
of history, arts, and libraries or his or her designee
authority
approves the application under this
subdivision, then he
or
she the authority shall issue a preapproval letter to the
taxpayer that states that the taxpayer is a qualified taxpayer and
the maximum percentage of the qualified expenditures on which a
credit may be claimed for the rehabilitation plan when it is
complete and a certification of completed rehabilitation is issued.
(b) For a rehabilitation plan that has more than $1,000,000.00
in qualified expenditures, the taxpayer shall apply to the
department
of history, arts, and libraries MSHDA
for approval of
the
additional credit under this subsection. The director of the
department
of history, arts, and libraries or his or her designee
authority, subject to the approval of the president of the Michigan
strategic fund or his or her designee, is authorized to approve an
application under this subdivision and determine the percentage of
up to 15% of the taxpayer's qualified expenditures for which he or
she may claim an additional credit. An application shall be
approved or denied not more than 15 business days after the
director
of the department of history, arts, and libraries or his
or
her designee authority has reviewed the application, determined
the percentage amount of the credit for that applicant, and
submitted the same to the president of the Michigan strategic fund
or his or her designee. If the president of the Michigan strategic
fund or his or her designee does not approve or deny the
application within 15 business days after the application is
received
from the department of history, arts, and libraries
authority, the application is considered approved and the credit
awarded
in the amount as determined by the director of the
department
of history, arts, and libraries or his or her designee
authority. If the president of the Michigan strategic fund or his
or her designee approves the application under this subdivision,
the
director of the department of history, arts, and libraries or
his
or her designee authority shall issue a preapproval letter to
the taxpayer that states that the taxpayer is a qualified taxpayer
and the maximum percentage of the qualified expenditures on which a
credit may be claimed for the rehabilitation plan when it is
complete and a certification of completed rehabilitation is issued.
(20)
The director of the department of history, arts, and
libraries
or his or her designee Except
as otherwise provided under
this subsection, the Michigan state housing development authority,
subject to the approval of the president of the Michigan strategic
fund and the state treasurer, may approve 3 additional credits
during the 2009 calendar year of up to 15% of the qualified
taxpayer's qualified expenditures, and 2 additional credits during
the 2010, 2011, 2012, and 2013 calendar years of up to 15% of the
qualified taxpayer's qualified expenditures, for certain
rehabilitation
plans that the director of the department of
history,
arts, and libraries or his or her designee authority
determines is a high community impact rehabilitation plan that will
have a significantly greater historic, social, and economic impact
than those plans described under subsection (19)(a) and (b). The
Michigan state housing development authority, subject to the
approval of the president of the Michigan strategic fund and the
state treasurer, may use 1 of the 2 additional credits available
during the 2010 calendar year to approve an additional credit
during the 2009 calendar year of up to 15% of the qualified
taxpayer's qualified expenditures and 1 of the 2 additional credits
available during the 2011 calendar year to approve an additional
credit during the 2010 calendar year of up to 15% of the qualified
taxpayer's qualified expenditures. To be eligible for the
additional credit under this subsection, the taxpayer shall apply
to
and receive a preapproval letter from the department of history,
arts,
and libraries authority. An application shall be approved or
denied
not more than 15 business days after the director of the
department
of history, arts, and libraries or his or her designee
authority has reviewed the application, determined the percentage
amount of the credit for that applicant, and submitted the same to
the president of the Michigan strategic fund and the state
treasurer. If the president of the Michigan strategic fund and the
state treasurer do not approve or deny the application within 15
business
days after the application is received from the department
of
history, arts, and libraries authority, the application is
considered approved and the credit awarded in the amount as
determined
by the director of the department of history, arts, and
libraries
or his or her designee authority. If the president of the
Michigan strategic fund and the state treasurer approve the
application
under this subdivision, the director of the department
of
history, arts, and libraries or his or her designee authority
shall issue a preapproval letter to the taxpayer that states that
the taxpayer is a qualified taxpayer and the maximum percentage of
the qualified expenditures on which a credit may be claimed for the
high community impact rehabilitation plan when it is complete and a
certification of completed rehabilitation is issued. Before
approving
a credit under this subsection, the director of the
department
of history, arts, and libraries or his or her designee
authority shall consider all of the following criteria to the
extent reasonably applicable:
(a) The importance of the historic resource to the community
in which it is located.
(b) If the rehabilitation of the historic resource will act as
a catalyst for additional rehabilitation or revitalization of the
community in which it is located.
(c) The potential that the rehabilitation of the historic
resource will have for creating or preserving jobs and employment
in the community in which it is located.
(d) Other social benefits the rehabilitation of the historic
resource will bring to the community in which it is located.
(e) The amount of local community and financial support for
the rehabilitation of the historic resource.
(f) The taxpayer's financial need of the additional credit.
(g) Whether the taxpayer is eligible for the credit allowed
under section 47(a)(2) of the internal revenue code.
(h) Any other criteria that the director of the department of
history, arts, and libraries, the president of the Michigan
strategic fund, and the state treasurer consider appropriate for
the determination of approval under this subsection.
(21) The maximum amount of credit that a taxpayer or an
assignee may claim under subsection (20) during a tax year is
$3,000,000.00. If the amount of the credit approved in the
taxpayer's certificate of completed renovation is greater than
$3,000,000.00 that portion that exceeds the cap shall be carried
forward to offset tax liability in subsequent tax years until used
up.
(22) Before approving a credit, determining the amount of such
credit, and issuing a preapproval letter for such credit under
subsection (19) or before considering an amendment to the
preapproval
letter, the director of the department of history,
arts,
and libraries or his or her designee MSHDA shall consider the
following criteria to the extent reasonably applicable:
(a) The importance of the historic resource to the community.
(b) The physical condition of the historic resource.
(c) The taxpayer's financial need of the additional credit.
(d) The overall economic impact the renovation will have on
the community.
(e)
Any other criteria that the director of the department of
history,
arts, and libraries authority
and the president of the
Michigan strategic fund, as applicable, consider appropriate for
the determination of approval under subsection (19).
(23)
The director of the department of history, arts, and
libraries
or his or her designee authority
may at any time before a
certification of completed rehabilitation is issued for a credit
for which a preapproval letter was issued pursuant to subsection
(19) do the following:
(a) Subject to the limitations and parameters under subsection
(19), make amendments to the preapproval letter, which may include
revising the amount of qualified expenditures for which the
taxpayer may claim the additional credit under subsection (19).
(b)
Revoke the preapproval letter if he or she the authority
determines that there has not been substantial progress toward
completion of the rehabilitation plan or that the rehabilitation
plan
cannot be completed. The director of the department of
history,
arts, and libraries or his or her designee authority shall
provide the qualified taxpayer with a notice of his or her intent
to revoke the preapproval letter 45 days prior to the proposed date
of revocation.
(24) If a preapproval letter is revoked under subsection
(23)(b), the amount of the credit approved under that preapproval
letter shall be added to the annual cap in the calendar year that
the preapproval letter is revoked. After a certification of
completed rehabilitation is issued for a rehabilitation plan
approved
under subsection (19), if the director of the department
of
history, arts, and libraries or his or her designee authority
determines that the actual amount of the additional credit to be
claimed by the taxpayer for the calendar year is less than the
amount approved under the preapproval letter, the difference shall
be added to the annual cap in the calendar year that the
certification of completed rehabilitation is issued.
(25) Unless otherwise specifically provided under subsections
(19) through (24), all other provisions under this section such as
the recapture of credits, assignment of credits, and refundability
of credits in excess of a qualified taxpayer's tax liability apply
to the additional credits issued under subsections (19) and (20).
(26) In addition to meeting the criteria in subsection (20)(a)
through
(h), 2 3 of the 3 credits available under subsection
(20),
including the credit used from the 2010 calendar year, and approved
during the 2009 calendar year for a high community impact
rehabilitation plan shall be for an application meeting 1 of the
following criteria:
(a) All of the following:
(i) The historic resource must be at least 80 70 years
old.
(ii) The historic resource must comprise at least 75,000
500,000 total square feet.
(iii) The historic resource must be located in a county with a
population of more than 1,500,000.
(iv) The historic resource must be located in a city with an
unemployment rate that is at least 2% higher than the current state
average unemployment rate at the time of the application.
(v) The historic resource receives a federal earmark
appropriation
and is the former home of a former professional
sports
team.
(b) All of the following:
(i) The historic resource must be at least 85 years old.
(ii) The historic resource must comprise at least 120,000 total
square feet.
(iii) The historic resource must be located in a county with a
population of more than 400,000 and less than 500,000.
(iv) The historic resource must be located in a city with a
population of more than 100,000 and less than 125,000.
(v) The historic resource must be located in a city with an
unemployment rate that is at least 2% higher than the current state
average unemployment rate at the time of the application.
(c) All of the following:
(i) The historic resource must be at least 70 years old.
(ii) The historic resource must comprise at least 180,000 total
square feet but not more than 250,000 square feet and must exceed
30 stories in height.
(iii) The historic resource must be located in a county with a
population of more than 1,500,000.
(iv) The historic resource must be located in a city with an
unemployment rate that is at least 2% higher than the current state
average unemployment rate at the time of the application.
(v) The historic resource must be located in a historic
district that contains a park bifurcated by an all-American road
designated by the federal highway administration in a city with a
population of more than 750,000.
(vi) The historic resource must have been included in a
rehabilitation plan for which an application was submitted by the
application deadline for consideration of an additional credit for
the 2009 calendar year for a high community impact rehabilitation
plan.
(27) In addition to meeting the criteria in subsection (20)(a)
through (h), 1 of the credits available under subsection (20),
including the credit used from the 2011 calendar year, and approved
during the 2010 calendar year for a high community impact
rehabilitation plan shall be for an application that meets all of
the following criteria:
(a) The historic resource must be at least 85 years old.
(b) The historic resource must comprise at least 85,000 total
square feet.
(c) The historic resource must be located in a county with a
population of more than 500,000 but less than 600,000 according to
the official 2000 federal decennial census.
(d) The historic resource must be located in a city with a
population of more than 180,000 but less than 200,000 according to
the official 2000 federal decennial census.
(e) The historic resource is or was formerly owned by the
United States government or formerly housed agencies of the United
States government, or both.
(f) The historic resource houses facilities operated in
conjunction with a public university.
(28) (27)
For purposes of this section,
taxpayer includes a
person subject to the tax imposed under chapter 2A or 2B.
(29) (28)
As used in this section:
(a) "Contributing resource" means an historic resource that
contributes to the significance of the historic district in which
it is located.
(b) "Historic district" means an area, or group of areas not
necessarily having contiguous boundaries, that contains 1 resource
or a group of resources that are related by history, architecture,
archaeology, engineering, or culture.
(c) "Historic resource" means a publicly or privately owned
historic building, structure, site, object, feature, or open space
located within an historic district designated by the national
register of historic places, the state register of historic sites,
or a local unit acting under the local historic districts act, 1970
PA 169, MCL 399.201 to 399.215, or that is individually listed on
the state register of historic sites or national register of
historic places, and includes all of the following:
(i) An owner-occupied personal residence or a historic resource
located within the property boundaries of that personal residence.
(ii) An income-producing commercial, industrial, or residential
resource or an historic resource located within the property
boundaries of that resource.
(iii) A resource owned by a governmental body, nonprofit
organization, or tax-exempt entity that is used primarily by a
taxpayer lessee in a trade or business unrelated to the
governmental body, nonprofit organization, or tax-exempt entity and
that is subject to tax under this act.
(iv) A resource that is occupied or utilized by a governmental
body, nonprofit organization, or tax-exempt entity pursuant to a
long-term lease or lease with option to buy agreement.
(v) Any other resource that could benefit from rehabilitation.
(d) "Last tax year" means the taxpayer's tax year under former
1975 PA 228 that begins after December 31, 2006 and before January
1, 2008.
(e) "Local unit" means a county, city, village, or township.
(f) "Long-term lease" means a lease term of at least 27.5
years for a residential resource or at least 31.5 years for a
nonresidential resource.
(g)
"Michigan historical center" or "center" means the state
historic
preservation office of the Michigan historical center of
the
department of history, arts, and libraries or its successor
agency
state housing development
authority", "MSHDA", or
"authority" means the public body corporate and politic created by
section 21 of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1421.
(h) "Michigan strategic fund" means the Michigan strategic
fund created under the Michigan strategic fund act, 1984 PA 270,
MCL 125.2001 to 125.2094.
(i) "Open space" means undeveloped land, a naturally
landscaped area, or a formal or man-made landscaped area that
provides a connective link or a buffer between other resources.
(j) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(k)
"Preapproval letter" means a letter issued by the director
of
the department of history, arts, and libraries or his or her
designee
authority that indicates the date that the complete part 2
application was received and the amount of the credit allocated to
the project based on the estimated rehabilitation cost included in
the application.
(l) "Qualified expenditures" means capital expenditures that
qualify, or would qualify except that the taxpayer entered into an
agreement under subsection (13), for a rehabilitation credit under
section 47(a)(2) of the internal revenue code if the taxpayer is
eligible for the credit under section 47(a)(2) of the internal
revenue code or, if the taxpayer is not eligible for the credit
under section 47(a)(2) of the internal revenue code, the qualified
expenditures that would qualify under section 47(a)(2) of the
internal revenue code except that the expenditures are made to an
historic resource that is not eligible for the credit under section
47(a)(2) of the internal revenue code that were paid. Qualified
expenditures do not include capital expenditures for nonhistoric
additions to an historic resource except an addition that is
required by state or federal regulations that relate to historic
preservation, safety, or accessibility.
(m) "Qualified taxpayer" means a person that either owns the
resource to be rehabilitated or has a long-term lease agreement
with the owner of the historic resource and that has qualified
expenditures for the rehabilitation of the historic resource equal
to or greater than 10% of the state equalized valuation of the
property. If the historic resource to be rehabilitated is a portion
of an historic or nonhistoric resource, the state equalized
valuation of only that portion of the property shall be used for
purposes of this subdivision. If the assessor for the local tax
collecting unit in which the historic resource is located
determines the state equalized valuation of that portion, that
assessor's determination shall be used for purposes of this
subdivision. If the assessor does not determine that state
equalized valuation of that portion, qualified expenditures, for
purposes of this subdivision, shall be equal to or greater than 5%
of the appraised value as determined by a certified appraiser. If
the historic resource to be rehabilitated does not have a state
equalized valuation, qualified expenditures for purposes of this
subdivision shall be equal to or greater than 5% of the appraised
value of the resource as determined by a certified appraiser.
(n) "Rehabilitation plan" means a plan for the rehabilitation
of an historic resource that meets the federal secretary of the
interior's standards for rehabilitation and guidelines for
rehabilitation of historic buildings under 36 CFR part 67.
