Michigan-2021-SB1188-Introduced

SENATE BILL NO. 1188

September 28, 2022, Introduced by Senator HOLLIER and referred to the Committee on Economic and Small Business Development.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.713) by adding sections 285 and 677.

the people of the state of michigan enact:

Sec. 285. (1) Subject to the limitations under this section, beginning January 1, 2022 through December 31, 2031, the Michigan film and digital media office may approve an application for a credit against the tax imposed by this part for a state certified qualified production in an amount determined as follows:

(a) Except as otherwise provided under subdivision (b), 25% of the direct production expenditures.

(b) If the office determines that the production includes an approved "filmed in Michigan" logo, 30% of direct production expenditures.

(d) 20% of the qualified personnel expenditures attributable to employees who are not residents of this state.

(2) An applicant proposing to produce a qualified production in this state and seeking a credit for that qualified production must submit an application to the office. The application must be submitted in a form prescribed by the office and shall be accompanied by a $1,000.00 nonrefundable application fee for a qualified production that is less than 20 minutes in duration or a $2,000.00 nonrefundable application fee for a qualified production that is 20 minutes or more in duration and include all of the information and records requested by the office. An application fee received by the office under this subsection shall be deposited in the Michigan film promotion fund. The office shall not process or approve an application until it is complete. As part of the application, an applicant shall estimate direct production expenditures and qualified personnel expenditures for the proposed qualified production. The office shall approve or deny a complete application within 45 days after the application for a qualified production that is less than 20 minutes in duration is received by the office.

(3) In determining whether to approve an application under this section, the office shall consider the limitations under subsection (4) and all of the following:

(a) The extent to which the qualified production may have the effect of promoting this state as a tourist destination.

(b) The extent to which the qualified production may have the effect of promoting economic development or job creation in this state.

(c) The extent to which the credit will attract private investment for the production of qualified productions in this state.

(d) The record of the applicant in completing commitments to engage in a qualified production.

(e) If the applicant expects to spend at least $300,000.00 in this state for the preproduction, production, or postproduction costs of a state certified qualified production that is at least 20 minutes in duration or, for a state certified qualified production that is less than 20 minutes in duration, spend at least $50,000.00 in this state for the preproduction, production, or postproduction costs of that state certified qualified production.

(f) If the applicant is delinquent in a tax or other obligation owed to this state or be owned or under common control of an entity that is delinquent in a tax or other obligation owed to this state.

(g) If the applicant intends to commence work on the qualified production within 90 days after approval of the application and the date of the written notice of approval.

(4) Of the total number of applications approved under this section and section 677, the following limitations, plus any carryforward as provided under subsection (5) and section 677(5), apply:

(a) For qualified productions that are less than 20 minutes in duration, not more than $2,000,000.00 shall be approved for each of the first 3 calendar years of the credit, $4,000,000.00 for each of the second 3 calendar years of the credit, and $10,000,000.00 for each of the final 4 calendar years of the credit.

(b) For qualified productions that are 20 minutes or more in duration, not more than $50,000,000.00 for each of the first 3 calendar years of the credit, $75,000,000.00 for each of the second 3 calendar years of the credit, and $100,000,000.00 for each of the final 4 calendar years of the credit.

(5) If the office does not receive enough applications to award the entire amount allocated for credits under subsection (4)(a) and section 677(4)(a) during any of the first 3 calendar years or if the office determines that an applicant did not use any or a portion of the credit approved under the application under subsection (4)(a) or section 677(4)(a) for any of the first 3 calendar years, that remaining amount may be carried forward to the next calendar year for credits approved under subsection (4)(b) or section 677(4)(b). Starting with the second 3 calendar years and each calendar year thereafter, any remaining amount under subsection (4)(a) may be carried forward to the next calendar year for credits approved under subsection (4)(a) or section 677(4)(a). If the office does not receive enough applications to award the entire amount allocated for credits under subsection (4)(b) and section 677(4)(b) during the calendar year or if the office determines that an applicant did not use any or a portion of the credit approved under the application under subsection (4)(b) or section 677(4)(b) during the calendar year, that remaining amount may be carried forward to the next calendar year for credits approved under subsection (4)(b) or section 677(4)(b).

(6) If the office approves an application, the office shall provide the applicant with a written notice of the approval and the written notice must include all of the following:

(a) A requirement that the applicant commence work in this state on the identified qualified production within 90 days of the date of the written notice or else the application is denied. However, upon request submitted by the applicant based on good cause, the office may extend the period to commence work in this state for up to an additional 90 days.

(b) A statement identifying the applicant and the qualified production that the applicant intends to produce in whole or in part in this state.

(d) A requirement that the qualified production not depict obscene matter or an obscene performance.

(e) A requirement that the applicant shall give preference to qualified Michigan vendors and residents of this state.

(f) A requirement that the applicant provide the office with the information and independent certification the office and the department determine are necessary to verify direct production expenditures, qualified personnel expenditures, and eligibility for the credit under this section.

(7) Within 2 years of completion of the qualified production, the applicant shall provide the department with an independent certified public accountant's report on applying the agreed-upon procedures for the qualified production and submit a request to the office for a qualified production certificate of completion on a form prescribed by the office, along with any information or independent certification the office or department considers necessary to verify expenditures and calculate the amount of the credit. The department or office may request copies of the applicant's books and records for the qualified production and any other additional information it determines is necessary before issuing a qualified production certificate of completion and need not issue the qualified production certificate of completion until satisfied that direct production expenditures, qualified personnel expenditures, and eligibility are adequately established. The additional information requested must include an itemized statement of direct production expenditures and qualified personnel expenditures for the qualified production. The department shall verify the independent certified public accountant's report on applying the agreed-upon procedures for the qualified production and notify the office of the amount of the credit verified and to be awarded to the applicant within 45 days after receipt and the office shall process each request within 15 days after receiving notice from the department of the amount of the credit to be awarded in the qualified production certificate of completion. After notification from the department verifying the amount of the credit to be awarded, if the office determines that an applicant has complied with the terms of the written notice, the office shall, within 15 days, issue a qualified production certificate of completion to the applicant. Each qualified production certificate of completion shall be signed by the Michigan film commissioner and shall include the following information:

(a) The name of the applicant.

(b) The name of the state certified qualified production produced in whole or in part in this state.

(d) The amount of the applicant's credit awarded under this section and the designated tax year.

(e) The date of completion for the qualified production in this state.

(f) The unique number assigned to the qualified production project by the office under this section.

(g) The applicant's federal employer identification number and Michigan treasury number.

(h) Any independent certification required by the office.

(8) Information, records, or other data received, prepared, used, or retained by the office under this section that are submitted by an applicant and considered by the applicant and acknowledged by the office as confidential shall not be subject to the disclosure requirements of the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. Information, records, or other data shall only be considered confidential to the extent that the information or records describe the commercial and financial operations or intellectual property of the applicant, the information or records have not been publicly disseminated at any time, and disclosure of the information or records may put the applicant at a competitive disadvantage. For purposes of this subsection, information or records that describe commercial and financial operations do not include that portion of information or records that include any expenses that qualify under this section as qualified personnel expenditures or direct production expenditures and for which a credit may be claimed.

(9) The office shall forward a copy of each qualified production certificate of completion issued under this section to the governor, the president of the Michigan strategic fund, the chairperson of the senate finance committee, the chairperson of the house tax policy committee, the director of the senate fiscal agency, and the director of the house fiscal agency. An applicant or assignee that claims a credit under this section shall submit with the annual return filed under this part on which the credit under this section is claimed a copy of the qualified production certificate of completion and, if the credit was assigned, a copy of the assignment form provided for under this section to the department within the same tax year in which the qualified production certificate of completion was issued. A credit amount assigned under this subsection may be claimed against the assignee's tax under this part or part 2. A credit amount authorized or assigned to a partnership, limited liability company, or subchapter S corporation under this section or section 677 may be claimed against the partner's, member's, or shareholder's tax liability under this part based on the partner's, member's, or shareholder's proportionate share of ownership or an alternative method approved by the office. If the credit allowed under this section exceeds the tax liability of the applicant or assignee for the tax year or if the taxpayer claiming the credit does not have a tax liability under this part 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 5 years or until used up, whichever occurs first. The department shall, as soon as the information is available, annually report to the governor, the president of the Michigan strategic fund, the chairperson of the senate finance committee, the chairperson of the house tax policy committee, the director of the senate fiscal agency, and the director of the house fiscal agency the total amount of the credits claimed under this section that exceed the taxpayer's tax liability for the most recent year that tax information is available and for which returns have cleared and been processed. The credit under this section shall be claimed after all other credits under this part.

(10) An applicant may transfer and assign all or a portion of a credit awarded under this section to up to 10 assignees. An applicant may claim a portion of a credit and assign the remaining credit amount. A credit assignment can only be made once within the first year after the qualified production certificate of completion is issued, and a credit assignment under this section is irrevocable. The credit assignment under this subsection shall be made on a form prescribed by the department.

(11) The amount of the credit under this section shall be reduced by a redemption fee equal to 0.5% of the credit claimed, which shall be deducted from the credit otherwise payable to the applicant claiming the credit and be deposited by the department in the Michigan film promotion fund.

(12) An applicant that willfully submits information under this section that the applicant knows to be fraudulent or false shall, in addition to any other penalties provided by law, be liable for a civil penalty equal to the amount of the applicant's credit under this section. A penalty collected under this section shall be deposited in the Michigan film promotion fund.

(13) Not later than March 1, 2023 and each March 1 thereafter through March 1, 2032, the office shall evaluate the credits under this section and section 677 and submit to the governor, the president of the Michigan strategic fund, the chairperson of the senate finance committee, the chairperson of the house tax policy committee, the director of the senate fiscal agency, and the director of the house fiscal agency an annual report concerning the operation and effectiveness of the credit under this section and section 677. The requirements of section 28(1)(f) of 1941 PA 122, MCL 205.28, do not apply to disclosure of tax information required by this subsection. The report shall include all of the following:

(a) A brief assessment of the overall effectiveness of the credit under this section and section 677 at attracting qualified productions to this state during the immediately preceding calendar year. The assessment must include the economic impact data of the credit program, including both of the following:

(i) The number of full-time equivalent jobs created and retained and whether those jobs are entry level, production staff and crew, management, talent-related positions, or vendor-related positions.

(ii) The amount of direct production expenditures in this state, including the amount of those expenditures attributable to qualified Michigan vendors.

(b) The number of applications received for a tax credit under this section and section 677 during the immediately preceding calendar year, the names of the applicants and a brief description of the proposed qualified productions, including the locations in this state to be used in the production of qualified productions, and the proposed amount of money to be expended by the applicants to produce qualified productions in this state in the immediately preceding calendar year.

(c) The number of applications approved under this section and section 675 during the immediately preceding calendar year.

(d) The number of qualified production certificates of completion during the immediately preceding calendar year and the total amount of credits awarded by those qualified production certificates of completion.

(14) As used in this section and section 677:

(a) "Applicant" means a taxpayer that is engaged in the business of producing qualified productions or that is authorized by, or has a contract with, another entity or copyright holder that is engaged in the business of producing qualified productions, but does not include an entity that is more than 30% owned, affiliated, or controlled by an entity or individual who is in default on a loan made by this state, a loan guaranteed by this state, or a loan made or guaranteed by any other state.

(b) "Certified public accountant" means a person licensed as a certified public accountant under article 7 of the occupational code, 1980 PA 299, MCL 339.720 to 339.736.

(c) "Commence work" means to begin filming, taping, photographing, or any other form of digital capturing for the qualified production, including any preparation activity necessary to start filming, taping, photographing, or capturing digitally. For purposes of an animated production, the commence work date is the date the artwork that is to be used in actual frames of the qualified production is created.

(d) "Commercial domicile" means the principal place from which the trade or business of the person is directed or managed.

(e) "Direct production expenditure" means a preproduction, production, or postproduction expenditure that is made in this state to a qualified Michigan vendor and is not a personnel expenditure, but is directly attributable to the production or distribution of a qualified production and that is a transaction subject to taxation in this state. Direct production expenditure does not include any pass-through transactions or purchases made from a qualified Michigan vendor for any goods or services that are not within the ordinary course of business of that qualified Michigan vendor. Direct production expenditures paid to a qualified Michigan vendor include, but are not limited to, the purchase or use of tangible personal property in producing or distributing the qualified production or to purchase services relating to the production or distribution of the qualified production, including all of the following:

(i) Expenditures for optioning to include Michigan-based content, including a "filmed in Michigan" logo, and optioning or purchasing intellectual property including, but not limited to, books, scripts, music, or trademarks relating to the purchase of a script, story, scenario, screenplay, or format, including all expenditures generally associated with the optioning or purchase of intellectual property, including option money, agent fees, and attorney fees relating to the transaction, but not including deferrals, deferments, royalties, profit participation, or recourse or nonrecourse loans negotiated by the applicant to obtain the rights to the intellectual property.

(ii) Production work, production equipment, production software, postproduction work, postproduction equipment, postproduction software, set design, set construction, set operations, props, lighting, wardrobe, makeup, makeup accessories, photography, sound synchronization, special effects, visual effects, audio effects, film or digital processing, music, sound recording, sound editing and mixing, editing, and related services and materials.

(iii) Rental or use of facilities or equipment, use of soundstages or studios, location fees, and related services and materials.

(iv) Catering, food, lodging, and related services and materials, but not including any per diem disbursements made for food, lodging, and related services and materials.

(v) Use of vehicles, which may include chartered aircraft based in this state used for transportation in this state directly attributable to production of a qualified production, but may not include the chartering of aircraft for transportation outside of this state. For purposes of this subparagraph, use of vehicles and chartered aircraft includes fuel costs incurred in this state, and costs attributable to chartered aircraft are limited to 2 roundtrip fares per individual, per qualified production.

(vi) Commercial airfare for domestic travel to and from this state or within this state directly attributable to production or distribution of a qualified production. In calculating expenditures under this subparagraph, commercial airfare expenditures are limited to 2 roundtrip fares per individual, per qualified production.

(vii) Insurance coverage or bonding if purchased from an insurance agent based in this state.

(viii) Expenditures for distribution, including, but not limited to, preproduction, production, or postproduction costs relating to the creation of trailers, marketing videos, commercials, point-of-purchase videos, and content created on film or digital media, including, but not limited to, the duplication of films, videos, compact discs, digital video discs, and digital files or other digital media created for consumer consumption in this state.

(f) "Economic impact data" means data related to the types of jobs created and retained in this state by the applicant during the qualified production and the amount spent to produce the qualified production in this state during the qualified production.

(g) "Entry level position" means the lowest level of a hierarchy in a production, including untrained or unskilled employees working on a qualified production.

(h) "Full-time equivalent employee" and "full-time equivalent 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 the applicant. For purposes of calculating full-time equivalent employees under this section and section 677, an individual who is hired as an extra for the qualified production is considered a full-time equivalent employee for each day he or she is hired to work as an extra for the qualified production.

(i) "Inventory" means the stock of goods held for resale in the ordinary course of trade of a business. Inventory does not include personal property under lease or principally intended for lease rather than sale or property allowed a deduction or allowance for depreciation or depletion under the internal revenue code.

(j) "Michigan film and digital media office" or "office" means the office created under section 29a of the Michigan strategic fund act, 1984 PA 270, MCL 125.2029a.

(k) "Michigan film promotion fund" means the fund created under section 29d of the Michigan strategic fund act, 1984 PA 270, MCL 125.2029d.

(l) "Obscene matter or an obscene performance" means matter described in 1984 PA 343, MCL 752.361 to 752.374.

(m) "Postproduction costs" means a direct production expenditure for animation, dailies, digital intermediate color grading, editing, Foley recording, automatic dialogue replacement, sound recording, sound editing and mixing, special or visual effects including computer-generated imagery or other effects, scoring and music editing, beginning and end credits, negative processing and cutting, soundtrack production, dubbing, subtitling, or addition of sound or visual effects. Postproduction expenditure includes direct expenditures for advertising, marketing, distribution, or related expenses.

(n) "Production staff and crew" means office, production, and postproduction staff including, but not limited to, accountants, coordinators, secretaries, and any other individual involved with cameras, casting, construction, costume, electric, editing, grip, location, hair, makeup, props, swing gang, set decorating, sound, special effects, transportation, and visual effects related to the qualified production.

(o) "Qualified Michigan vendor" means a business that satisfies each of the following:

(i) Has commercial domicile in this state or is incorporated or registered to do business in this state, prior to commencing work on the qualified production.

(ii) Has at least 1 full-time equivalent employee.

(iii) Has at least 1 physical location in this state and has been doing business for at least 6 months before the date of the approval of the application for the qualified production under this section.

(iv) For a vendor engaged in the business of selling or renting equipment, maintains inventory in this state on a continuous basis.

(v) Is subject to the levy of taxes under this act, the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, and the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78.

(p) "Qualified personnel expenditure" means any payments and compensation for any 1 employee or contractual or salaried employee who performs services in this state for the production or distribution of a qualified production, including all of the following:

(i) Payment of wages.

(ii) Payment to a personal services corporation for the services of any individual as long as the employer withholds and pays to the state at least 5% from each payment.

(iii) Qualified personnel expenditure does not include any compensation or payments made to any 1 employee or contractual or salaried employee that receives wages in excess of $500,000.00 for his or her services in this state for the production or distribution of a qualified production.

(q) "Qualified production" means single media or multimedia content created in whole or in part in this state for distribution or exhibition by any means and media in any digital media format, film, or videotape, including, but not limited to, a motion picture, a documentary, a television series, a television miniseries, a television special, interstitial television programming, long-form television, interactive television, music videos, commercials, industrials, short films, web-based content, an internet video, a video, motion capture, or animation. Qualified production also includes any trailer, pilot, video teaser, or demo created primarily to stimulate the sale, marketing, promotion, or exploitation of future investment in a production. Qualified production does not include any of the following:

(i) A production for which records are required to be maintained with respect to any performer in the production under 18 USC 2257.

(ii) A production that includes obscene matter or an obscene performance.

(iii) A production that primarily consists of televised news or current events.

(iv) A production that primarily consists of a live sporting event.

(v) A production that primarily consists of political advertising.

(vi) A radio program.

(vii) A weather show.

(viii) A financial market report.

(ix) A talk show.

(x) A game show.

(xi) An awards show or other gala event production.

(xii) A production with the primary purpose of fund-raising.

(xiii) A nonscripted reality production that is not a commercial.

(r) "Resident" means an individual who is domiciled in this state for at least 6 months before commencing work on a qualified production and has an operator's or chauffeur's license issued under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923, an enhanced driver license issued under the enhanced driver license and enhanced official state personal identification act, 2008 PA 23, MCL 28.301 to 28.308, an official state personal identification card issued under 1972 PA 222, MCL 28.291 to 28.300, or an enhanced official state personal identification card issued under the enhanced driver license and enhanced official state personal identification card act, 2008 PA 23, MCL 28.301 to 28.308. As used in this subdivision, "domicile" means a place where an individual has his or her true, fixed, and permanent home and principal establishment, to which, whenever absent therefrom, he or she intends to return, and domicile continues until another permanent establishment is established.

(s) "State certified qualified production" means a qualified production for which a qualified production certificate of completion has been issued by the office under this section or section 675.

(t) "Talent-related positions" means individuals with speaking, background, or extra roles that appear in front of the camera.

(u) "Vendor-related positions" means jobs obtained or created through a subcontractor including, but not limited to, security, janitorial, printing, florist, dry cleaners, and limousine services.

(v) "Wages" means all compensation paid for services rendered by an employee that are attributable to a qualified production. Compensation includes health, life, and disability insurance premiums, payments under the federal insurance contributions act, chapter 21 of subtitle C of the internal revenue code, 26 USC 3101 to 3128, retirement or pension contributions, and vacation and sick leave pay.

Sec. 677. (1) Subject to the limitations under this section, beginning January 1, 2022 through December 31, 2031, the Michigan film and digital media office may approve an application for a credit against the tax imposed by this part for a state certified qualified production in an amount determined as follows:

(a) Except as otherwise provided under subdivision (b), 25% of the direct production expenditures.

(b) If the office determines that the production includes an approved "filmed in Michigan" logo, 30% of direct production expenditures.

(d) 20% of the qualified personnel expenditures attributable to employees who are not residents of this state.

(3) In determining whether to approve an application, the office shall consider the limitations under subsection (4) and all of the following:

(a) The extent to which the qualified production may have the effect of promoting this state as a tourist destination.

(b) The extent to which the qualified production may have the effect of promoting economic development or job creation in this state.

(c) The extent to which the credit will attract private investment for the production of qualified productions in this state.

(d) The record of the applicant in completing commitments to engage in a qualified production.

(f) If the applicant is delinquent in a tax or other obligation owed to this state or be owned or under common control of an entity that is delinquent in a tax or other obligation owed to this state.

(g) If the applicant intends to commence work on the qualified production within 90 days after approval of the application and the date of the written notice of approval.

(4) Of the total number of applications approved under this section and section 285, the following limitations, plus any carryforward as provided under subsection (5) and section 285(5), apply:

(5) If the office does not receive enough applications to award the entire amount allocated for credits under subsection (4)(a) and section 285(4)(a) during any of the first 3 calendar years or if the office determines that an applicant did not use any or a portion of the credit approved under the application under subsection (4)(a) or section 285(4)(a) for any of the first 3 calendar years, that remaining amount may be carried forward to the next calendar year for credits approved under subsection (4)(b) or section 285(4)(b). Starting with the second 3 calendar years and each calendar year thereafter, any remaining amount under subsection (4)(a) and section 285(4)(a) may be carried forward to the next calendar year for credits approved under subsection (4)(a) or section 285(4)(a). If the office does not receive enough applications to award the entire amount allocated for credits under subsection (4)(b) or section 285(4)(b) during the calendar year or if the office determines that an applicant did not use any or a portion of the credit approved under the application under subsection (4)(b) or section 285(4)(b) during the calendar year, that remaining amount may be carried forward to the next calendar year for credits approved under subsection (4)(b) or section 285(4)(b).

(6) If the office approves an application, the office shall provide the applicant with a written notice of the approval and the written notice must include all of the following:

(b) A statement identifying the applicant and the qualified production that the applicant intends to produce in whole or in part in this state.

(d) A requirement that the qualified production not depict obscene matter or an obscene performance.

(e) A requirement that the applicant shall give preference to qualified Michigan vendors and residents of this state.

(f) A requirement that the applicant provide the office with the information and independent certification the office and the department determines is necessary to verify direct production expenditures, qualified personnel expenditures, and eligibility for the credit under this section.

(a) The name of the applicant.

(b) The name of the state certified qualified production produced in whole or in part in this state.

(d) The amount of the applicant's credit allowed under this section and the designated tax year.

(e) The date of completion for the qualified production in this state.

(f) The unique number assigned to the qualified production project by the office under this section.

(g) The applicant's federal employer identification number or Michigan treasury number.

(h) Any independent certification required by the office.

(9) The office shall forward a copy of each qualified production certificate of completion issued under this section to the governor, the president of the Michigan strategic fund, the chairperson of the senate finance committee, the chairperson of the house tax policy committee, the director of the senate fiscal agency, and the director of the house fiscal agency. An applicant or assignee that claims a credit under this section shall submit with the annual return filed under this part on which the credit under this section is claimed a copy of the qualified production certificate of completion and, if the credit was assigned, a copy of the assignment form provided for under this section to the department within the same tax year in which the qualified production certificate of completion was issued. A credit amount assigned under this subsection may be claimed against the assignee's tax under this part or part 1. If the credit allowed under this section exceeds the tax liability of the applicant or assignee for the tax year or if the taxpayer claiming the credit does not have a tax liability under this part 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 5 years or until used up, whichever occurs first. The department shall, as soon as the information is available, annually report to the governor, the president of the Michigan strategic fund, the chairperson of the senate finance committee, the chairperson of the house tax policy committee, the director of the senate fiscal agency, and the director of the house fiscal agency the total amount of the credits claimed under this section that exceed the taxpayer's tax liability for the most recent year that tax information is available and for which returns have cleared and been processed. The credit under this section shall be claimed after all other credits under this part.

(10) An applicant may transfer and assign all or a portion of a credit awarded under this section to up to 10 assignees. An applicant may claim a portion of a credit and assign the remaining credit amount. A credit assignment can only be made within the first year after the qualified production certificate of completion is issued, and a credit assignment under this section is irrevocable. The credit assignment under this subsection shall be made on a form prescribed by the department.