April 17, 2008, Introduced by Senators RICHARDVILLE and BROWN and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 409 (MCL 208.1409), as amended by 2007 PA 145.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 409. (1) For tax years that begin on or after January 1,
2008 and end before January 1, 2013, an eligible taxpayer may claim
a credit against the tax imposed by this act equal to the amount of
capital expenditures on infield renovation, grandstand and
infrastructure upgrades, and any other construction and upgrades,
subject to the following:
(a) For the 2008 through 2010 tax years, the credit shall not
exceed
$1,700,000.00 $2,100,000.00
or the taxpayer's tax liability
under this act, whichever is less.
(b) For the 2011 tax year, the credit shall not exceed
$1,180,000.00
$1,580,000.00 or the taxpayer's tax liability under
this act, whichever is less.
(c) For the 2012 tax year, the credit shall not exceed
$650,000.00
$1,050,000.00 or the taxpayer's tax liability under
this act, whichever is less.
(2) In addition to the credit allowed under subsection (1),
for
the 2009 2008 tax year an eligible taxpayer may claim a credit
against the tax imposed by this act equal to 50% of the amount of
necessary expenditures incurred including any professional fees,
additional police officers, and any traffic management devices, to
ensure traffic and pedestrian safety while hosting the requisite
motorsports
events each calendar year. For the 2010 2009 tax year
and
each tax year after 2010 2009, an eligible taxpayer may claim a
credit against the tax imposed by this act equal to all of the
necessary expenditures incurred including any professional fees,
additional police officers, and any traffic management devices, to
ensure traffic and pedestrian safety while hosting the requisite
motorsports events each calendar year. If the amount of the credit
allowed under this subsection exceeds the tax liability of the
taxpayer for the tax year that excess shall be refunded.
(3)
An eligible taxpayer shall expend at least $25,000,000.00
$30,000,000.00 on capital expenditures before January 1, 2011.
(4) As used in this section:
(a) "Eligible taxpayer" means any of the following:
(i) A person who owns and operates a motorsports entertainment
complex and has at least 2 days of motorsports events each calendar
year which shall be comparable to NASCAR Nextel cup events held in
2007 or their successor events.
(ii) A person who is the lessee and operator of a motorsports
entertainment complex or the lessee of the land on which a
motorsports entertainment complex is located and operates that
motorsports entertainment complex.
(iii) A person who operates and maintains a motorsports
entertainment complex under an operation and management agreement.
(b) "Motorsports entertainment complex" means a closed-course
motorsports facility, and its ancillary grounds and facilities,
that satisfies all of the following:
(i) Has at least 70,000 fixed seats for race patrons.
(ii) Has at least 6 scheduled days of motorsports events each
calendar year.
(iii) Serves food and beverages at the motorsports entertainment
complex during motorsports events each calendar year through
concession outlets, which are staffed by individuals who represent
or are members of 1 or more nonprofit civic or charitable
organizations that directly benefit from the concession outlets'
sales.
(iv) Engages in tourism promotion.
(v) Has permanent exhibitions of motorsports history, events,
or vehicles within the motorsports entertainment complex.
(c) "Motorsports event" means a motorsports race and its
ancillary activities that have been sanctioned by a sanctioning
body.
(d) "Sanctioning body" means the American motorcycle
association (AMA); auto racing club of America (ARCA); championship
auto racing teams (CART); grand American road racing association
(GRAND AM); Indy racing league (IRL); national association for
stock car auto racing (NASCAR); national hot rod association
(NHRA); professional sports car racing (PSR); sports car club of
America (SCCA); United States auto club (USAC); Michigan state
promoters association; or any successor organization or any other
nationally or internationally recognized governing body of
motorsports that establishes an annual schedule of motorsports
events and grants rights to conduct the events, that has
established and administers rules and regulations governing all
participants involved in the events and all persons conducting the
events, and that requires certain liability assurances, including
insurance.