HB-5215, As Passed House, September 28, 2005
SUBSTITUTE FOR
HOUSE BILL NO. 5215
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
by amending section 37e (MCL 208.37e), as added by 2003 PA 297.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 37e. (1) For tax years that begin after December 31,
2008, and
before January 1, 2020, a taxpayer that is an investor
may
claim a credit against the tax imposed by this act equal to the
credit
amount determined and certified under this section and the
Michigan
early stage venture capital investment act of 2003 a
taxpayer that has been issued a tax voucher certificate under
section 23 of the Michigan early stage venture investment act of
2003, 2003 PA 296, MCL 125.2253, or any taxpayer to which all or a
portion of a tax voucher is transferred pursuant to the Michigan
early stage venture investment act of 2003, 2003 PA 296, MCL
125.2231 to 125.2263, may use the tax voucher to pay a liability of
the taxpayer due under this act.
(2)
The total amount of all tax credits certified voucher
certificates that shall be approved under this section and the
Michigan early stage venture capital investment act of 2003, 2003
PA 296, MCL 125.2231 to 125.2263, for all taxpayers for all years
shall
not exceed $150,000,000.00 an amount sufficient
to allow
the Michigan early stage venture investment corporation to raise
$450,000,000.00 for the purposes authorized under the Michigan
early stage venture investment act of 2003, 2003 PA 296, MCL
125.2231 to 125.2263. The total amount of all tax voucher
certificates issued shall not exceed $600,000,000.00 and the
department shall not approve a tax voucher certificate under
section 23(2) of the Michigan early stage venture investment act of
2003, 2003 PA 296, MCL 125.2253, after December 31, 2015. The
amount of tax voucher certificates approved by the department for
use in any tax year shall not exceed 25% of the total amount of all
tax voucher certificates approved by the department.
(3) Investors shall apply to the Michigan early stage venture
capital
investment corporation for certification
of allowable tax
credits
approval of tax voucher certificates at the
time and in
the manner required under the Michigan early stage venture
investment act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263.
(4)
The Michigan early stage venture capital investment
corporation shall determine which investors are eligible for tax
credits
vouchers and the amount of the tax credit
vouchers
allowed to each investor as provided in the Michigan early stage
venture capital
investment act of 2003, 2003 PA 296, MCL 125.2231
to 125.2263.
(5) The tax voucher certificate, and any completed transfer
form that was issued pursuant to the Michigan early stage venture
investment act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263,
shall be attached to the taxpayer's annual return under this act.
for
the first tax year in which a tax credit or any portion of the
tax
credit allowed is claimed, which shall be the tax year
indicated
on the certificate. The department may prescribe and
implement alternative methods of reporting and recording ownership,
transfer, and utilization of tax voucher certificates.
(6)
A credit under this section tax voucher shall be
claimed
used to pay a liability of
the taxpayer due under this act
only
in a tax year that begins after December
31, 2008. and before
January
1, 2020. The credit allowed for that tax year shall not
exceed
the difference between the amount actually repaid and the
amount
set as the repayment due in the agreement entered into by
the
taxpayer and the Michigan early stage venture capital
investment
corporation pursuant to section 17 of the Michigan early
stage
venture capital investment act of 2003. The amount of the
tax voucher that may be used to pay a liability of the taxpayer due
under this act in any tax year shall not exceed the lesser of the
following:
(a) The amount of the tax voucher stated on the tax voucher
certificate held by the taxpayer.
(b) The amount authorized to be used in the tax year under the
terms of the tax voucher certificate.
(c) The taxpayer’s liability due under this act for the tax
year for which the tax voucher is to be applied.
(7)
The total amount of all credits authorized for any 1
calendar
year under this section pursuant to the agreements entered
into
by the taxpayer and the Michigan early stage venture capital
investment
corporation pursuant to section 17 of the Michigan early
stage
venture capital investment act of 2003 shall not exceed
$30,000,000.00.
(8)
If the taxpayer's credit allowed under this section for a
tax
year exceeds the taxpayer's tax liability for the tax year,
that
portion of the credit that exceeds the tax liability for the
tax
year shall be refunded.
(9)
The fund manager shall invest and budget in such a manner
that
no credits are claimed under this section in any tax year
before
tax years that begin after December 31, 2008.
(10)
For tax years that begin after December 31, 2009, if a
credit
under this section is not allowed against the taxpayer's tax
liability
under this act or against any successor tax to the tax
imposed
by this act, a taxpayer to whom a certificate has been
issued
under the Michigan early stage venture capital investment
act
of 2003 may claim a credit as allowed under section 270 of the
income
tax act of 1967, 1967 PA 281, MCL 206.270, or transfer that
certificate
and the credit allowed pursuant to that certificate to
a
person who may claim the tax credit as allowed under section 270
of
the income tax act of 1967, 1967 PA 281, MCL 206.270. The credit
amount
under this subsection shall be equal to the remaining credit
allowable
and may be claimed only for tax years that begin after
December
31, 2009 and before January 1, 2020.
(7) The department shall administer transfers of tax voucher
certificates or the transfer of the right to be issued and receive
a tax voucher certificate as provided in the Michigan early stage
venture investment act of 2003, 2003 PA 296, MCL 125.2231 to
125.2263, and may take any action necessary to enforce and
effectuate the permissible issuance and use of tax voucher
certificates in a manner authorized under this section and the
Michigan early stage venture investment act of 2003, 2003 PA 296,
MCL 125.2231 to 125.2263.
(8) If the amount of a tax voucher certificate held by a
taxpayer exceeds the amount the taxpayer may use under subsection
(6)(b) or (c) in a tax year, the excess may be used by the taxpayer
to pay, subject to the limitations of subsection (6), any future
liability of the taxpayer under this act or, if and to the extent
of the amount transferred, any future liability under this act of
any other taxpayer to which the tax voucher certificate is
transferred pursuant to the Michigan early stage venture investment
act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263, and this act.
(9) Upon the request of a taxpayer, the department shall issue
separate replacement tax voucher certificates, or replacement
approval letters, evidencing the right of the holder to be issued
and receive a tax voucher certificate in an aggregate amount equal
to the amount of a tax voucher certificate or an approval letter
presented by a taxpayer. Replacement tax voucher certificates may
be used, and replacement approval letters may be issued, to
evidence the right to be issued and receive a tax voucher
certificate that will be used for 1 or more of the following
purposes:
(a) To pay any liability of the taxpayer under this act to the
extent permitted in any tax year by subsection (6).
(b) To pay any liability of the taxpayer under and to the
extent allowed under section 270 of the income tax act of 1967,
1967 PA 281, MCL 206.270.
(c) To be transferred to a taxpayer who may use the
replacement tax voucher certificate to pay any liability under this
act to the extent allowed under subsection (6).
(d) To be transferred to a person who may use the tax voucher
certificate to pay any liability under and to the extent allowed
under section 270 of the income tax act of 1967, 1967 PA 281, MCL
206.270.
(10) (11)
As used in this section:
(a) "Board", "fund manager", and "investor" mean those terms
as defined in the Michigan early stage venture capital investment
act of 2003, 2003 PA 296, MCL 125.2231 to 125.2263.
(b) "Certificate" means the certificate issued under section
23 of the Michigan early stage venture capital investment act of
2003, 2003 PA 296, MCL 125.2253.
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) House Bill No. 5047.
(b) House Bill No. 5048.
(c) House Bill No. 5109.
(d) House Bill No. 5216.
(e) Senate Bill No. 533.