Bill Text: MI HB4740 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Michigan business tax; credit; credit for certain tax liability attributable to a qualified real estate entity; provide for. Amends 2007 PA 36 (MCL 208.1101 - 208.1601) by adding sec. 463.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2009-04-01 - Printed Bill Filed 04/01/2009 [HB4740 Detail]

Download: Michigan-2009-HB4740-Introduced.html

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HOUSE BILL No. 4740

 

March 31, 2009, Introduced by Reps. Melton and Coulouris and referred to the Committee on Tax Policy.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

(MCL 208.1101 to 208.1601) by adding section 463.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 463. (1) For tax years that begin after December 31,

 

2008, a taxpayer may claim a credit against the tax imposed by this

 

act equal to 100% of the taxpayer's total tax liability imposed

 

under this act that is attributable to a qualified real estate

 

entity.

 

     (2) For purposes of this section, the tax liability

 

attributable to a qualified real estate entity shall be measured by

 

the reduction in the taxpayer's tax liability which would result if

 

the qualified real estate entity did not exist.

 

     (3) As used in this section:

 

     (a) "Qualified real estate" means real estate that is located

 

outside this state and that is acquired prior to the effective date

 

of the amendatory act that added this section.

 

     (b) "Qualified real estate entity" means a person that is

 

directly or indirectly owned by less than 6 individuals, that

 

generates income exclusively from the management, operation, or

 

sale of qualified real estate, and that has less than $10,000.00 of

 

business income from working capital that is related to the

 

management, operation, or sale of qualified real estate.