HOUSE BILL No. 4755

 

April 1, 2009, Introduced by Rep. Jackson and referred to the Committee on Energy and Technology.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

(MCL 208.1101 to 208.1601) by adding section 465.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 465. (1) For tax years that begin after December 31,

 

2008, a taxpayer that furnishes broadband services to underserved

 

and rural areas may claim a credit against the tax imposed under

 

this act equal to the applicable percentage of the cost of each

 

qualified broadband property placed in service during the tax year.

 

     (2) If the amount of the credit allowed under this section and

 

any unused carryforward of the credit allowed by this section

 

exceed the tax liability of the taxpayer for the tax year, that

 

portion that exceeds the tax liability shall not be refunded, but

 


may be carried forward to offset tax liability in subsequent tax

 

years.

 

     (3) If the taxpayer disposes of or ceases to use the qualified

 

broadband property to provide service to underserved and rural

 

areas for which a credit was claimed under this section less than 5

 

years after the year in which the credit was claimed, the following

 

percentage of the credit amount previously claimed relative to that

 

qualified broadband property shall be added back to the tax

 

liability of the taxpayer in the year that the taxpayer disposed of

 

or ceased to use that qualified broadband property:

 

     (a) If the disposal or cease of use is less than 1 year after

 

the year in which the credit was claimed, 100%.

 

     (b) If the disposal or cease of use is at least 1 year but

 

less than 2 years after the year in which the credit was claimed,

 

80%.

 

     (c) If the disposal or cease of use is at least 2 years but

 

less than 3 years after the year in which the credit was claimed,

 

60%.

 

     (d) If the disposal or cease of use is at least 3 years but

 

less than 4 years after the year in which the credit was claimed,

 

40%.

 

     (e) If the disposal or cease of use is at least 4 years but

 

less than 5 years after the year in which the credit was claimed,

 

20%.

 

     (f) If the disposal or cease of use is 5 years or more after

 

the year in which the credit was claimed, an addback to the

 

taxpayer's tax liability shall not be made.

 


     (4) As used in this section:

 

     (a) "Applicable percentage" means 50% for qualified broadband

 

property that is placed in service in an underserved or rural area

 

where on the effective date of the amendatory act that added this

 

section only 5% of the households have broadband access and 30% for

 

all other underserved or rural areas where more than 5% of

 

households have broadband access on the effective date of the

 

amendatory act that added this section.

 

     (b) "Broadband" means an internet protocol-based transmission

 

service at a speed that is not less than 5 megabits per second

 

downstream and 1 megabit per second upstream that enables users to

 

send and receive voice, video, data, graphics, or a combination

 

thereof without regard to any transmission media or technology.

 

     (c) "Qualified broadband property" means section 1245 property

 

that is tangible property or computer software used to provide

 

broadband services in underserved or rural areas to purchasers of

 

those broadband services and the original use of that property

 

commences with the taxpayer. Qualified broadband property does not

 

include any property described under section 50(b) of the internal

 

revenue code.

 

     (d) "Rural area" means any census tract outside a metropolitan

 

statistical area.

 

     (e) "Section 1245 property" means that term as defined under

 

section 1245 of the internal revenue code.

 

     (f) "Underserved area" means any of the following:

 

     (i) Any census tract that is located in an empowerment zone or

 

enterprise community designated under section 1391 of the internal

 


revenue code or in the District of Columbia enterprise zone

 

established under section 1400 of the internal revenue code.

 

     (ii) Any census tract located in a metropolitan statistical

 

area in which the poverty level based on the most recent census

 

data is at least 30% and the median family income does not exceed

 

70% of the greater of the metropolitan area median family income or

 

the statewide median family income.

 

     (iii) Any census tract located in a nonmetropolitan statistical

 

area in which the poverty level based on the most recent census

 

data is at least 30% and the median family income does not exceed

 

70% of the nonmetropolitan statewide median family income.