June 2, 2010, Introduced by Senators GILBERT, RICHARDVILLE, NOFS 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 2008 PA 572.
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 in this state 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 $2,100,000.00 or the taxpayer's tax liability under this
act, whichever is less.
(b)
For the 2011 through the 2012 tax year, years, the credit
shall not exceed $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
$1,050,000.00
or the taxpayer's tax liability under this act,
whichever
is less.
(2) Subject to the limitation provided under this subsection,
for tax years that begin on or after January 1, 2013 and end before
January 1, 2017, an eligible taxpayer may claim a credit against
the tax imposed by this act equal to the amount of capital
expenditures in this state on infield renovation, grandstand and
infrastructure upgrades, and any other construction and upgrades.
The credit allowed under this subsection shall not exceed
$1,580,000.00 or the taxpayer's tax liability under this act before
the calculation of the credit allowed under subsection (3),
whichever is less.
(3) (2)
In addition to the credit allowed
under subsection
(1), for the 2009 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 in this state 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 tax year and each tax year after 2010, an eligible
taxpayer may claim a credit against the tax imposed by this act
equal to all of the necessary expenditures in this state 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.
(4) (3)
An To be eligible to claim
the credit allowed under
subsection (1), an eligible taxpayer shall expend at least
$30,000,000.00 on capital expenditures before January 1, 2011. To
be eligible to claim the credit allowed under subsection (2), an
eligible taxpayer shall, in addition to the expenditures required
to claim the credit under subsection (1), expend, at a minimum, an
additional $32,000,000.00 on capital expenditures as follows:
(a) At least $10,000,000.00 after December 31, 2010 and before
January 1, 2013.
(b) Including the amount expended under subdivision (a), a
cumulative total of at least $32,000,000.00 after December 31, 2010
and before January 1, 2016.
(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.