SENATE BILL No. 1096

September 21, 2016, Introduced by Senators ANANICH, BIEDA, YOUNG, GREGORY, HERTEL, HOPGOOD and HOOD and referred to the Committee on Commerce.

     A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

(MCL 208.1101 to 208.1601) by adding section 402.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 402. Notwithstanding any other provision under this

chapter, beginning after the effective date of the amendatory act

that added this section each written agreement or amendments to a

written agreement required for a tax credit under this chapter

shall include both of the following:

     (a) A penalty provision in the event the taxpayer relocates

outside of this state during the terms of the written agreement or

subsequently fails to meet the requirements of the agreement or any

other conditions included in the agreement. The penalty provision

shall provide that the taxpayer shall have an amount equal to the

total amount of the credit received by the taxpayer under the

agreement added back to the tax liability of the taxpayer in the

tax year that the taxpayer relocates outside of this state or fails

to comply with the agreement.

     (b) A provision that the taxpayer consents to the jurisdiction

of the courts of this state for the collection and enforcement of a

penalty described in this section.