March 11, 2008, Introduced by Senators RICHARDVILLE, SANBORN, GILBERT, ALLEN, KAHN, SWITALSKI and OLSHOVE and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 441 (MCL 208.1441).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 441. (1) For the 2008, 2009, and 2010 tax years, except
as otherwise provided under subsection (2), a taxpayer may claim
the Michigan entrepreneurial credit equal to 100% of the eligible
taxpayer's tax liability imposed by this act attributable to
increased employment under subdivision (b) for 3 years if the
taxpayer meets all of the following conditions or 200% of the
eligible taxpayer's tax liability imposed by this act attributable
to increased employment under subdivision (b) for 3 years if the
taxpayer is located in a certified technology park and meets all of
the following conditions:
(a) Had less than $25,000,000.00 in gross receipts in the
immediately preceding tax year. The $25,000,000.00 amount shall be
annually adjusted for inflation using the Detroit consumer price
index.
(b) Has created in this state or transferred into this state
not fewer than 20 new jobs in the immediately preceding tax year.
(c) Has made a capital investment in this state of not less
than
$1,250,000.00 $500,000.00 in the immediately preceding tax
year. For purposes of determining eligibility under this
subdivision, the capital investment shall not include the purchase
of an existing plant or the purchase of existing equipment.
(d) Is not a retail establishment as described in major groups
52 through 59 and 70 under the standard industrial classification
code as compiled by the United States department of labor. However,
a restaurant that did not exist, as determined by the treasurer, in
this state in the immediately preceding year before which the
credit is claimed and that is not a franchise or a part of a
unitary business group may qualify for the credit under this
section.
(2) A taxpayer that is an eligible business as defined in
section 407 and that received an eligible contribution as defined
in section 407 for which a credit was claimed by another taxpayer
may claim the Michigan entrepreneurial credit equal to 100% of the
taxpayer's tax liability imposed by this act attributable to the
increased employment under subdivision (b) for 3 years if the
taxpayer meets all of the following conditions:
(a) Had less than $25,000,000.00 in gross receipts in the
immediately preceding tax year.
(b) Has increased the number of new jobs in this state by at
least 20% from the immediately preceding tax year.
(3) An eligible taxpayer may claim the credit under this
section on a form prescribed by the department.
(4) If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
excess shall be refunded.
(5) (4)
If the new jobs for which the
taxpayer qualifies for
this credit are relocated outside of this state within 5 years
after claiming the credit under this section or if the taxpayer
reduces the employment levels by more than 10% of the jobs for
which the taxpayer qualifies for the credit under this section,
that taxpayer is liable in an amount equal to the total of all
credits received under this section. Any liability under this
subsection shall be collected under 1941 PA 122, MCL 205.1 to
205.31.
(6) (5)
A taxpayer's liability attributable
to the increased
employment is the total liability of the taxpayer multiplied by a
fraction the numerator of which is the payroll of the increased
jobs of the facility meeting the requirements of this section and
the denominator of which is the taxpayer's total payroll in this
state.
(7) The credit provided in this section shall be taken after
any other credit under this act.
(8) (6)
As used in this section:
(a) "Certified technology park" means that term as defined in
section 2 of the local development financing act, 1986 PA 281, MCL
125.2152.
(b) (a)
"Detroit
consumer price index" means the most
comprehensive index of consumer prices available for the Detroit
area from the United States department of labor, bureau of labor
statistics.
(c) (b)
"New jobs" means jobs
that meet all of the following
criteria:
(i) Did not exist in this state in the immediately preceding
tax year.
(ii) Represent an overall increase in full-time equivalent jobs
of the taxpayer in this state in the immediately preceding tax
year.
(iii) Are not jobs into which employees transfer if the
employees worked in this state for the taxpayer in other jobs prior
to beginning the new jobs.
(d) (c)
"Payroll" means total
salaries and wages before
deducting any personal or dependency exemptions.
Enacting section 1. This amendatory act is retroactive and is
effective for taxes levied on and after January 1, 2008.