November 29, 2005, Introduced by Reps. Moore, Hildenbrand, Hoogendyk, Brandenburg, Drolet, Gosselin, Palmer, Kooiman, Pavlov, Farhat, LaJoy, Ward, Huizenga, Marleau, Mortimer, Robertson, Stakoe, Stahl, Sheen, Steil, Shaffer, Hummel, Kahn, Moolenaar, Booher, Taub, Vander Veen, Pearce, Nitz, Elsenheimer, Baxter, Acciavatti and Schuitmaker and referred to the Committee on Tax Policy.
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 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 the use of which is directly related to 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
in excess of the number of jobs the taxpayer maintained in this
state in the immediately preceding tax year.
(b) The taxpayer will locate tangible personal property the
use of which is directly related to 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 issue a
certificate to the taxpayer certifying that the criteria under
subsection (3) have been met, and the taxpayer shall attach the
certificate to the annual return required under this act on which
the credit under this section is claimed.
(5) If the taxpayer does not maintain the total number of
transferred jobs located in 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 transferred jobs is less during the
first year after the year in which the credit was claimed, 100%.
(b) If the total number of transferred 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 transferred 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%.
(6) 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.
(7) The credit allowed under this section shall be calculated
after application of all other credits allowed under this act.
(8) As used in this section, "property taxes" and "transferred
jobs" mean those terms as defined in section 35i.