September 10, 2008, Introduced by Reps. Hoogendyk, Agema, Garfield and Pastor and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 450b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 450b. (1) For the 2009 tax year and each tax year after
2009, a taxpayer that is engaged in the research and development of
any device that will improve gasoline fuel efficiency in any
automotive application by 30% or more may claim a credit against
the tax imposed by this act equal to that taxpayer's qualified
research expenses in this state in the tax year.
(2) The credit allowed under this section may only be claimed
for 5 tax years, beginning with the first tax year for which a
credit was claimed under this section.
(3) If the credit allowed under this subsection exceeds the
liability of the qualified taxpayer for the tax year, the qualified
taxpayer may elect to have that portion that exceeds the tax
liability of the qualified taxpayer refunded or to have the excess
carried forward to offset tax liability in subsequent years for 5
years or until it is used up, whichever occurs first.
(4) A taxpayer that claims a credit under this section is not
prohibited from claiming a credit under section 405 or 450.
However, the taxpayer shall not claim a credit under this section
and sections 405 and 450 based on the same research and
development.
(5) As used in this section, "qualified research expenses"
means that term as defined in section 41(b) of the internal revenue
code.