Bill Text: MI HB6021 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Economic development: Michigan strategic fund; community investment tax credit program; create. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 88u. TIE BAR WITH: HB 6020'24
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2024-10-16 - Bill Electronically Reproduced 10/16/2024 [HB6021 Detail]
Download: Michigan-2023-HB6021-Introduced.html
HOUSE BILL NO. 6021
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
(MCL 125.2001 to 125.2094) by adding section 88u.
the people of the state of michigan enact:
Sec. 88u. (1) The fund, in cooperation with the department of treasury, shall develop a Michigan community investment tax credit program to promote community participation and collaborations among nonprofit organizations, businesses, and individual residents while producing outcomes that assist a distressed area and the low-income population in a neighborhood, community, or commercial corridor. The authorized employees, officers, and agents of the fund, which may include employees of the Michigan economic development corporation, shall operate and implement this program.
(2) The fund shall develop and use a detailed application, approval, and compliance process for the board to approve a community investment plan submitted by place-based nonprofit community organization and, in cooperation with the department of treasury, allocate community investment tax credits to that qualified organization for certification to any person that makes a qualified donation to that qualified organization and seeks to claim a credit as provided under section 279 or 679 of the income tax act of 1967, 1967 PA 281, MCL 206.279 and 206.679. The fund shall post the application, approval, and compliance process on the fund's website. The fund shall also include a list of place-based nonprofit community organizations that have an approved community investment plan and have been allocated community investment tax credits under this program for certification to any person that makes a qualified donation to that qualified organization.
(3) A place-based nonprofit community organization must apply to the board for approval of its community investment plan and for an allocation of community investment tax credits for qualified donations received for the implementation and support of that qualified organization's community investment plan. The board shall approve or deny an application not more than 90 days after receipt of the application that is considered administratively complete by the board or its designee. If an application is approved, subject to the limitations under this section, the board shall issue an approval letter to that organization and determine the amount of community investment tax credits to be allocated to that qualified organization each tax year for not more than 3 consecutive tax years. The board shall not allocate a total of more than $25,000,000.00 in community investment tax credits for a single tax year. The board shall not issue an approval letter allocating a community investment tax credit of less than $50,000.00 or more than $150,000.00 to a single qualified organization for a single tax year and shall not make a subsequent allocation to that same qualified organization unless the board determines that the qualified organization has made satisfactory progress in utilizing any prior allocation. The board shall provide the department of treasury with a copy of each approval letter issued under this subsection.
(4) After receiving the approval letter for the community investment plan and an allocation of community investment tax credits under subsection (3), a qualified organization shall notify each person that makes a qualified donation of at least $500.00 and seeks to claim a community investment tax credit that a donation made under this program is nonrefundable and issue a certificate to that person that includes all of the following:
(a) The date on which the person made the qualified donation.
(b) The name of the qualified organization in which the qualified donation was made.
(c) The amount of the qualified donation in the qualified organization.
(d) The amount of the community investment tax credit to which the person is entitled to claim.
(5) The qualified organization shall send a copy of each community investment tax credit certificate issued under subsection (4) to the fund and the department of treasury.
(6) As used in this section:
(a) "Community development programs, projects, and activities" means strategies to encourage small business development, provide affordable housing, promote financial empowerment, stimulate workforce attraction and retention, and any other strategies that assist a distressed area within a neighborhood, community, or commercial corridor and the low-income population who reside within a neighborhood or community.
(b) "Community investment plan" means a business plan or neighborhood priorities investment strategy developed by a place-based nonprofit community organization that details its community development programs, projects, and activities to assist a distressed area within a neighborhood, community, or commercial corridor and the low-income population who reside within a neighborhood or community through qualified donations.
(c) "Community investment tax credit" means the tax credit allowed under section 279 or 679 of the income tax act of 1967, 1967 PA 281, MCL 206.279 and 206.679.
(d) "Financial institution" means a bank holding company, a national bank, a state chartered bank, a state chartered savings bank, a federally chartered savings association, or a federally chartered farm credit system institution.
(e) "Place-based nonprofit community organization" means a nonprofit organization that is organized under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192, exempt under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and meets all of the following:
(i) A majority of the organization's efforts are focused on serving 1 or more specific neighborhoods or communities and a constituency that is economically disadvantaged.
(ii) The purpose of the organization is to engage local residents and businesses to work together to undertake community development programs, projects, and activities.
(iii) The organization's constituency, including economically disadvantaged people, has a meaningful role in governance and direction of the organization, which may include committees, membership meetings, and representation on the board of directors.
(iv) Is not a financial institution.
(f) "Qualified donation" means a cash or cash equivalent donation that is contributed by a person to a qualified organization to promote and support implementation of the qualified organization's community investment plan.
(g) "Qualified organization" means a place-based nonprofit community organization that applies for approval of its community investment plan under subsection (3) and that the board issued an approval letter and allocated community investment tax credits to that organization.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 6020 (request no. 03234'23 *) of the 102nd Legislature is enacted into law.
