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.