Bill Text: MI HB4674 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Michigan business tax; credit; credit for anchor companies based on qualified new jobs created by certain suppliers and customers; revise. Amends sec. 431a of 2007 PA 36 (MCL 208.1431a). TIE BAR WITH: SB 0358'09, SB 0428'09, SB 0493'09
Spectrum: Bipartisan Bill
Status: (Passed) 2009-12-15 - Assigned Pa 159'09 With Immediate Effect [HB4674 Detail]
Download: Michigan-2009-HB4674-Introduced.html
HOUSE BILL No. 4674
March 19, 2009, Introduced by Reps. Mayes, Coulouris, Sheltrown, Horn, Stamas and Moore and referred to the Committee on New Economy and Quality of Life.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 431a (MCL 208.1431a), as added by 2008 PA 92.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 431a. (1) A qualified taxpayer may claim a credit against
the
tax imposed by this act in an amount equal to the sum of up to
100%
of the each qualified supplier's or and qualified customer's
payroll attributable to employees who perform qualified new jobs as
determined by the Michigan economic growth authority, multiplied by
the tax rate for the tax year and that credit may include each of
the qualified supplier's and qualified customer's payroll described
above for a period of up to 5 years as determined by the Michigan
economic growth authority. If the credit allowed under this
subsection exceeds the 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 years for 10 years or
until it is used up, whichever occurs first. The Michigan economic
growth
authority shall not designate more than 5 taxpayers as an
anchor
company new anchor companies in each calendar year and shall
not approve more than 5 new credits in each calendar year under
this
subsection. A taxpayer An
anchor company has 5 years from the
date
on which the taxpayer anchor
company is designated as an
anchor company to seek certification from the Michigan economic
growth authority as a qualified taxpayer for each qualified
supplier
or and qualified customer for which a credit is sought
that is included in the credit which that anchor company is seeking
under this section. However, a credit shall not be provided for a
tax
year prior to the tax year during which the certification
designation
as an anchor company is made. If a
qualified taxpayer
is
awarded a credit under this subsection, any subsequent credits
awarded
to that qualified taxpayer shall not be included in
determining
the yearly limit of 5 new credits under this
subsection.
(2) The Michigan economic growth authority may also provide
that
qualified sales to a qualified supplier or customer are not
sales
in this state for purposes of shall
not be considered in
calculating the sales factor under this act for the tax year for
which
a credit is provided under this section. Qualified sales to a
qualified
supplier or customer are the total sales in this state to
a
qualified supplier or customer multiplied by a fraction, the
numerator
of which is the compensation on which the credit in this
section
is calculated and the denominator of which is the total
compensation
of the qualified supplier or customer in this state.
(3) 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 the
credit under this section is claimed. The certificate required by
this subsection shall state all of the following:
(a) The taxpayer is a qualified taxpayer and the date on which
the taxpayer was designated as an anchor company.
(b) The amount of the credit under this section for the
qualified taxpayer for the designated tax year.
(c)
The amount of the qualified sales calculated in accordance
with
the fraction described under subsection (2) to a qualified
customer.
(d) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(4) A qualified taxpayer that claims a credit under this
section and subsequently fails to meet the requirements of this
section or any other conditions included in an agreement entered
into with the Michigan economic growth authority in order to obtain
a certificate for which the credit was under this section may, as
to be determined by the Michigan economic growth authority, have
its credit reduced or terminated or have a percentage of the credit
amount previously claimed under this section added back to the tax
liability of the taxpayer in the year that the taxpayer fails to
comply with this section or the agreement.
(5) A credit under this section may be taken after all other
allowable nonrefundable credits under this act.
(6) (5)
As used in this section:
(a) "Anchor company" means a qualified high-technology
business that is an integral part of a high-technology activity and
that has the ability or potential ability to influence business
decisions and site location of qualified suppliers and customers.
(b) "Business", "qualified high-technology activity", and
"qualified high-technology business" mean those terms as defined in
the Michigan economic growth authority act, 1995 PA 24, MCL 207.801
to 207.810.
(c) "Full-time job" means a job performed by an individual for
35 hours or more each week and whose income and social security
taxes are withheld by 1 or more of the following:
(i) A qualified supplier or qualified customer.
(ii) An employee leasing company on behalf of a qualified
supplier or qualified customer.
(iii) A professional employer organization on behalf of a
qualified supplier or qualified customer.
(d) "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.
(e) "Qualified new job" means a full-time job created by a
qualified supplier or qualified customer at a facility or
facilities that is in excess of the number of full-time jobs a
qualified supplier or qualified customer maintained in this state
or at a facility prior to the expansion or location, as determined
by the authority.
(f) "Qualified sales to a qualified customer" means sales to a
qualified customer that are in excess of the Michigan sales to the
customer prior to the year of expansion or location within this
state as determined by the Michigan economic growth authority and
that would otherwise be included in the calculation of the sales
factor under this act.
(g) (f)
"Qualified supplier"
or and "qualified customer" means
a business that opens a new location in this state, a business that
locates in this state, or an existing business located in this
state
that expands its business within the last year as a result of
an anchor company and satisfies prior to the issuance of a
certificate and at the time specified in the agreement with the
qualified taxpayer, as certified by the Michigan economic growth
authority, each of the following:
(i) Has financial transactions with the anchor company.
(ii) Sells a critical or unique component or technology
necessary for the anchor company to market a finished product as
the result of a commercial relationship with the anchor company or
buys a critical or unique component from the anchor company.
(iii) Has created more than 10 qualified new jobs.
(iv) Has made an investment of at least $1,000,000.00 as
certified by the Michigan economic growth authority.
(h) (g)
"Qualified taxpayer"
means a taxpayer that was
designated by the Michigan economic growth authority as an anchor
company
within the last 5 years and that has influenced a new
qualified supplier or qualified customer to open, locate, or expand
in this state.
(i) "Tax rate" means the rate imposed under section 51 of the
income tax act of 1967, 1967 PA 281, MCL 206.51, for the tax year
in which the tax year of the taxpayer for which the credit is being
computed begins.
Enacting section 1. This amendatory act is retroactive and is
effective for tax years that begin after December 31, 2008.
