HB-5459, As Passed Senate, December 13, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5459

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

(MCL 208.1 to 208.145) by adding section 35j.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 35j. (1) A taxpayer that enters into an agreement under

subsection (3) and that provides transferred jobs to this state may

claim a credit against the tax imposed by this act equal to 100% of

the property taxes paid on tangible personal property used in the

performance of the transferred jobs. The credit allowed under this

section shall only be available for taxes paid the first year that

the taxpayer pays property taxes on that property which shall be

the same tax year in which the credit under this section based on

those property taxes is claimed.

     (2) The credit under subsection (1) can be claimed only for

taxes paid in the 2009 tax year.

     (3) A taxpayer may claim the credit allowed under this section

if the taxpayer enters into an agreement with the Michigan economic

growth authority that states all of the following:

     (a) The taxpayer will provide transferred jobs in this state.

     (b) The taxpayer will locate tangible personal property that

will be used in the performance of those transferred jobs in this

state.

     (c) The transfer of the jobs and location of the tangible

personal property cannot reasonably be completed by the taxpayer

before January 1, 2007.

     (4) The Michigan economic growth authority shall determine if

the taxpayer provides transferred jobs. If the Michigan economic

growth authority determines that the taxpayer provides transferred

jobs, the Michigan economic growth authority shall issue a

certificate to the taxpayer that includes all of the following:

     (a) The taxpayer's federal identification number.

     (b) The number of transferred jobs, as determined by the

Michigan economic growth authority.

     (c) The taxable value of the property used in the performance

of the transferred jobs as reported by the taxpayer on the property

tax statement required by and filed under section 19 of the general

property tax act, 1893 PA 206, MCL 211.19.

     (d) A statement that the transfer of the jobs and location of

the tangible personal property cannot reasonably be completed by

the taxpayer before January 1, 2007.

House Bill No. 5459 as amended December 13, 2005

     (5) The taxpayer shall not claim a credit under this section

unless the Michigan economic growth authority has issued a

certificate to the taxpayer pursuant to subsection (3). The

taxpayer shall attach the certificate to the annual return required

under this act on which the credit under this section is claimed.

     (6) If the taxpayer does not maintain the total number of jobs

located in this state <<OR, IF THE JOBS QUALIFY UNDER SECTION

35I(9)(E)(iii)(B), AT THE FACILITY,>> in the tax year immediately preceding the tax

year in which <<the transferred jobs were moved to this state>>, for 3

years

after the year in which a credit under this section was claimed,

the following percentage of the credit amount previously claimed

under this section shall be added back to the tax liability of the

taxpayer in that year:

     (a) If the total number of jobs is less during the first year

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

     (b) If the total number of jobs is less during the second year

after the year in which the credit was claimed and subdivision (a)

did not apply, 67%.

     (c) If the total number of jobs is less during the third year

after the year in which the credit was claimed and if neither

subdivision (a) nor (b) applied, 33%.

     (7) Personal property taxes used to calculate a credit under

this section shall not be used to calculate a credit under section

35d, 35f, 35g, or 35h.

     (8) The credit allowed under this section shall be calculated

after application of all other credits allowed under this act.

     (9) If the credit allowed under this section exceeds the

taxpayer's tax liability for the tax year, that portion of the

credit that exceeds the tax liability shall be refunded.

     (10) As used in this section, "property taxes" and

"transferred jobs" mean those terms as defined in section 35i.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 203.

     (b) Senate Bill No. 909.

     (c) Senate Bill No. 910.

     (d) House Bill No. 4982.

     (e) House Bill No. 5460.

     (f) House Bill No. 5461.