SB-1265, As Passed Senate, April 24, 2008

SENATE BILL No. 1265

April 17, 2008, Introduced by Senators SWITALSKI, GLEASON, KAHN, STAMAS, ALLEN and BARCIA and referred to the Committee on Commerce and Tourism.

A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

(MCL 208.1101 to 208.1601) by adding section 432.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 432. (1) A qualified taxpayer that has entered into an

agreement with the Michigan economic growth authority that provides

that the qualified taxpayer will construct and operate a new or

expanded facility described in the agreement under this section for

the manufacture of polycrystalline silicon may claim a credit

against the tax imposed by this act for a period of 12 years

calculated as provided in sections 432a through 432d and claimed

for the tax years as provided in sections 432a through 432d. This

credit shall be taken after all other credits provided under this

act.

Senate Bill No. 1265 as amended April 24, 2008

(2) The Michigan economic growth authority shall not enter

into more than 1 agreement under this section and shall not enter

into an agreement after September 30, 2008. <<The agreement shall include

a repayment provision of all or a portion of the credits received by the

qualified taxpayer if the qualified taxpayer does not construct or

operate a new or expanded facility as provided in the agreement.>>

(3) A qualified taxpayer shall not claim a credit under

sections 432a through 432d unless the Michigan economic growth

authority has issued a certificate to that taxpayer. The qualified

taxpayer shall attach the certificate to the annual return filed

under this act on which a credit under this section is claimed.

(4) The certificate required under subsection (3) shall state

all of the following:

(a) The taxpayer is a qualified taxpayer.

(b) The amount of the credit under this section for the

qualified taxpayer for the designated tax year.

the Michigan department of treasury number assigned to the taxpayer

and for a taxpayer that is a unitary business group, the federal

employer identification number or Michigan department of treasury

number assigned to the member of the group engaged in this state in

the manufacture of polycrystalline silicon for solar cells and

semiconductor microchips.

(5) For purposes of this section and sections 432a through

432d:

(a) "Guaranteed cost of electricity" means the following:

(i) For a tax year that begins after December 31, 2011 and

before January 1, 2019, 4.85 cents per kilowatt hour.

(ii) For a tax year that begins after December 31, 2018 and

before January 1, 2021, 5.20 cents per kilowatt hour.

(iii) For a tax year that begins after December 31, 2020 and

before January 1 2024, 6.00 cents per kilowatt hour.

(b) "Projected cost of electricity" means the following:

(i) For a tax year that begins after December 31, 2011 and

before January 1, 2013, 6.49 cents per kilowatt hour.

(ii) For a tax year that begins after December 31, 2012 and

before January 1, 2014, 6.66 cents per kilowatt hour.

(iii) For a tax year that begins after December 31, 2013 and

before January 1, 2015, 6.84 cents per kilowatt hour.

(iv) For a tax year that begins after December 31, 2014 and

before January 1, 2016, 7.02 cents per kilowatt hour.

(v) For a tax year that begins after December 31, 2015 and

before January 1, 2017, 7.20 cents per kilowatt hour.

(vi) For a tax year that begins after December 31, 2016 and

before January 1, 2018, 7.40 cents per kilowatt hour.

(vii) For a tax year that begins after December 31, 2017 and

before January 1, 2019, 7.59 cents per kilowatt hour.

(viii) For a tax year that begins after December 31, 2018 and

before January 1, 2020, 7.79 cents per kilowatt hour.

(ix) For a tax year that begins after December 31, 2019 and

before January 1, 2021, 8.00 cents per kilowatt hour.

(x) For a tax year that begins after December 31, 2020 and

before January 1, 2022, 8.21 cents per kilowatt hour.

(xi) For a tax year that begins after December 31, 2021 and

before January 1, 2023, 8.43 cents per kilowatt hour.

(xii) For a tax year that begins after December 31, 2022 and

before January 1, 2024, 8.65 cents per kilowatt hour.