September 20, 2006, Introduced by Reps. Tobocman, Hunter, Kolb, Alma Smith, Mayes and Vagnozzi 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 33.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 33. (1) For tax years that begin after December 31, 2006,
a taxpayer may claim a credit against the tax imposed by this act
equal to 20% of the taxpayer's research and development expenses in
this state in the tax year.
(2) A person that performs research and development in this
state and does not have a tax liability under this act may file a
claim on or before April 15 with the department for an amount equal
to 20% of that person's research and development expenses in this
state in the immediately preceding calendar year.
(3) If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
portion of the credit that exceeds the tax liability shall be
refunded.
(4) The credit allowed under this section shall be calculated
after the application of all nonrefundable credits allowed under
this act.
(5) As used in this section, "research and development
expenses" means that term as defined in section 41(b) of the
internal revenue code.