SB-0223, As Passed Senate, March 15, 2005
February 17, 2005, Introduced by Senators JELINEK, VAN WOERKOM, BIRKHOLZ, SANBORN, CROPSEY, GOSCHKA, ALLEN, STAMAS, HARDIMAN, GARCIA, BROWN and BARCIA and referred to the Committee on Agriculture, Forestry and Tourism.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
by amending section 38e (MCL 208.38e), as amended by 2003 PA 273.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 38e. (1) A taxpayer may claim a credit against the tax
imposed by this act equal to the sum of 50% of the qualified
expenses defined in subsection (5)(d)(i) and (ii) and 100% of the
qualified expenses defined in subsection (5)(d)(iii) paid by the
taxpayer in the tax year in each of the following circumstances:
(a)
Except for apprentices trained under subdivision (b), or
(c), or (d), an amount not to exceed $2,000.00 for each apprentice
trained by the taxpayer in the tax year.
(b) For companies that have a classification under the North
American industrial classification system (NAICS) of 333511,
333512, 333513, 333514, or 333515 and for tax years that begin
after December 31, 2003, an amount not to exceed $4,000.00 for each
apprentice trained by the taxpayer in the tax year.
(c) For companies that have a classification under the North
American industrial classification system (NAICS) of 333511,
333512, 333513, 333514, or 333515 and for tax years that begin
after December 31, 2003, an amount not to exceed $1,000.00 for each
special apprentice trained by the taxpayer in the tax year.
(d) For companies that have a classification under the North
American industrial classification system (NAICS) of 311111,
311119, 311211, 311212, 311213, 311221, 311222, 311223, 311225,
311230, 311313, 311320, 311330, 311340, 311411, 311412, 311421,
311422, 311423, 311511, 311512, 311513, 311514, 311520, 311611,
311612, 311613, 311615, 311711, 311712, 311813, 311821, 311822,
311823, 311911, 311919, 311920, 311930, 311941, 311942, or 311999
and for tax years that begin after December 31, 2004, an amount not
to exceed $4,000.00 for each apprentice trained by the taxpayer in
the tax year.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer under this act for the tax year, that
portion of the credit that exceeds the tax liability shall be
refunded.
(3) The credit allowed under this section shall be claimed on
the annual return required under section 73, or for a taxpayer that
is not required to file an annual return, the department shall
provide that the credit under this subsection may be claimed on the
C-8044 form, a successor form for persons not required to file an
annual return, or other simplified form prescribed by the
department.
(4) For each year that this credit is in effect, the
department of labor and economic growth shall prepare a report
containing information including, but not limited to, the number of
companies taking advantage of the apprenticeship credit, the number
of apprentices participating in the program, the number of
apprentices who complete a program the costs of which were the
basis of a credit under this section, the number of apprentices
that were hired by the taxpayer after the apprenticeship training
was completed for which the taxpayer claimed a credit under this
section for the costs of training that apprentice, information on
the employment status of individuals who have completed an
apprenticeship to the extent the information is available, and the
fiscal impact of the apprenticeship credit. This report shall then
be transmitted to the house tax policy and senate finance
committees and to the house and senate appropriations committees.
This report shall be due no later than the first day of March each
year.
(5) As used in this section:
(a) "Apprentice" means a person who is a resident of this
state, is 16 years of age or older but younger than 20 years of
age, has not obtained a high school diploma, is enrolled in high
school or a general education development (G.E.D.) test preparation
program, and is trained by a taxpayer through a program that meets
all of the following criteria:
Senate Bill No. 223 as amended March 9, 2005
(i) The program is registered with the bureau of apprenticeship
and training of the United States department of labor.
(ii) The program is provided pursuant to an apprenticeship
agreement signed by the taxpayer and the apprentice.
(iii) The program is filed with a local workforce development
board.
(iv) The minimum term in hours for the program shall be not
less than 4,000 hours.
(b) "Enrolled" means currently enrolled or expecting to enroll
after a period of less than 3 months during which the program is
not in operation and the apprentice is not enrolled.
(c) "Local workforce development board" means a board
<<established by the chief elected official of a
local unit of
government pursuant to the job
training partnership act,
Public Law 97-300, 96 Stat. 1322, AUTHORIZED
UNDER THE WORKFORCE
INVESTMENT ACT IN 29 USC 2832>> that has the responsibility to
ensure that the workforce needs of the employers in the geographic
area governed by the local unit of government are met.
(d) "Qualified expenses" means all of the following expenses
paid by the taxpayer in a tax year that begins after December 31,
1996 for expenses used to calculate a credit under subsection
(1)(a) and after December 31, 2003 for expenses used to calculate a
credit under subsection (1)(b) that were not paid for with funds
the taxpayer received or retained that the taxpayer would not
otherwise have received or retained and that are used for training
an apprentice:
(i) Salary and wages paid to an apprentice.
(ii) Fringe benefits and other payroll expenses paid for the
benefit of an apprentice.
(iii) Costs of classroom instruction and related expenses
identified as costs for which the taxpayer is responsible under an
apprenticeship agreement, including but not limited to tuition,
fees, and books for college level courses taken while the
apprentice is enrolled in high school.
(e) "Special apprentice" means a person who is not an
apprentice
as defined by section (5)(a) subdivision
(a), is a
resident of this state, is 16 years of age or older but younger
than 25 years of age, and is trained by a taxpayer through a
program that meets all of the criteria under subdivision (a)(i) to
(iv).