HB-5215, As Passed Senate, October 19, 2005
SENATE 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 before November 1, 2005 and on
and after November 1, 2005 if subsection (3) is not in effect,
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.
(3) On and after the date that the Michigan tobacco settlement
finance authority is authorized by law to issue bonds under the
Michigan tobacco settlement finance authority act, but not sooner
than November 1, 2005, the total amount of all tax voucher
certificates that shall be approved under this section and the
Michigan early stage venture investment act of 2003, 2003 PA 296,
MCL 125.2231 to 125.2263, shall not exceed 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 shall not exceed $600,000,000.00.
(4) 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.
For tax voucher certificates approved under subsections (2) and
(3), 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.
(5) (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.
(6) (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.
(7) (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
that are not inconsistent with the provisions of this act.
(8) (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.
(9) 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 shall 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.
(10) If the amount of a tax voucher certificate held by a
taxpayer or transferee exceeds the amount the taxpayer or
transferee may use under subsection (8)(b) or (c) in a tax year,
that excess may be used by the taxpayer or transferee to pay,
subject to the limitations of subsection (8), any future liability
of the taxpayer or transferee under this act.
(11) 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 (8).
(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 (8).
(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.
(12) (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.
(c) "Transferee" means a taxpayer to whom a tax voucher
certificate has been transferred under section 23 of the Michigan
early stage venture investment act of 2003, 2003 PA 296, MCL
125.2253, and this section.