SB-0944, As Passed Senate, December 3, 2009

SUBSTITUTE FOR

SENATE BILL NO. 944

A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

by amending section 435 (MCL 208.1435), as amended by 2009 PA 141.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 435. (1) A qualified taxpayer with a rehabilitation plan

certified after December 31, 2007 or a qualified taxpayer that has

a rehabilitation plan certified before January 1, 2008 under

section 39c of former 1975 PA 228 for the rehabilitation of an

historic resource for which a certification of completed

rehabilitation has been issued after the end of the taxpayer's last

tax year may credit against the tax imposed by this act the amount

determined pursuant to subsection (2) for the qualified

expenditures for the rehabilitation of an historic resource

pursuant to the rehabilitation plan in the year in which the

certification of completed rehabilitation of the historic resource

is issued. Only those expenditures that are paid or incurred during

the time periods prescribed for the credit under section 47(a)(2)

of the internal revenue code and any related treasury regulations

shall be considered qualified expenditures.

(2) The credit allowed under this subsection shall be 25% of

the qualified expenditures that are eligible, or would have been

eligible except that the taxpayer entered into an agreement under

subsection (13), for the credit under section 47(a)(2) of the

internal revenue code if the taxpayer is eligible for the credit

under section 47(a)(2) of the internal revenue code or, if the

taxpayer is not eligible for the credit under section 47(a)(2) of

the internal revenue code, 25% of the qualified expenditures that

would qualify under section 47(a)(2) of the internal revenue code

except that the expenditures are made to an historic resource that

is not eligible for the credit under section 47(a)(2) of the

internal revenue code, subject to both of the following:

(a) A taxpayer with qualified expenditures that are eligible

for the credit under section 47(a)(2) of the internal revenue code

may not claim a credit under this section for those qualified

expenditures unless the taxpayer has claimed and received a credit

for those qualified expenditures under section 47(a)(2) of the

internal revenue code or the taxpayer has entered into an agreement

under subsection (13).

(b) A credit under this subsection shall be reduced by the

amount of a credit received by the taxpayer for the same qualified

expenditures under section 47(a)(2) of the internal revenue code.

(3) To be eligible for the credit under subsection (2), the

taxpayer shall apply to and receive from the Michigan ~~historical~~

~~center certification~~ state housing development authority that the

historic significance, the rehabilitation plan, and the completed

rehabilitation of the historic resource meet the criteria under

subsection (6) and either of the following:

(a) All of the following criteria:

(i) The historic resource contributes to the significance of

the historic district in which it is located.

(ii) Both the rehabilitation plan and completed rehabilitation

of the historic resource meet the federal secretary of the

interior's standards for rehabilitation and guidelines for

rehabilitating historic buildings, 36 CFR part 67.

(iii) All rehabilitation work has been done to or within the

walls, boundaries, or structures of the historic resource or to

historic resources located within the property boundaries of the

property.

(b) The taxpayer has received certification from the national

park service that the historic resource's significance, the

rehabilitation plan, and the completed rehabilitation qualify for

the credit allowed under section 47(a)(2) of the internal revenue

code.

(4) If a qualified taxpayer is eligible for the credit allowed

under section 47(a)(2) of the internal revenue code, the qualified

taxpayer shall file for certification with the ~~center~~ MSHDA to

qualify for the credit allowed under section 47(a)(2) of the

internal revenue code. If the qualified taxpayer has previously

filed for certification with the ~~center~~ authority to qualify for

the credit allowed under section 47(a)(2) of the internal revenue

code, additional filing for the credit allowed under this section

is not required.

(5) The ~~center~~ authority may inspect an historic resource at

any time during the rehabilitation process and may revoke

certification of completed rehabilitation if the rehabilitation was

not undertaken as represented in the rehabilitation plan or if

unapproved alterations to the completed rehabilitation are made

during the 5 years after the tax year in which the credit was

claimed. The ~~center~~ authority shall promptly notify the department

of a revocation.

(6) Qualified expenditures for the rehabilitation of an

historic resource may be used to calculate the credit under this

section if the historic resource meets 1 of the criteria listed in

subdivision (a) and 1 of the criteria listed in subdivision (b):

(a) The resource is 1 of the following during the tax year in

which a credit under this section is claimed for those qualified

expenditures:

(i) Individually listed on the national register of historic

places or state register of historic sites.

(ii) A contributing resource located within an historic

district listed on the national register of historic places or the

state register of historic sites.

(iii) A contributing resource located within an historic

district designated by a local unit pursuant to an ordinance

adopted under the local historic districts act, 1970 PA 169, MCL

399.201 to 399.215.

(b) The resource meets 1 of the following criteria during the

tax year in which a credit under this section is claimed for those

qualified expenditures:

(i) The historic resource is located in a designated historic

district in a local unit of government with an existing ordinance

under the local historic districts act, 1970 PA 169, MCL 399.201 to

399.215.

(ii) The historic resource is located in an incorporated local

unit of government that does not have an ordinance under the local

historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and

has a population of less than 5,000.

(iii) The historic resource is located in an unincorporated

local unit of government.

(iv) The historic resource is located in an incorporated local

unit of government that does not have an ordinance under the local

historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and is

located within the boundaries of an association that has been

chartered under 1889 PA 39, MCL 455.51 to 455.72.

(v) The historic resource is subject to a historic

preservation easement.

(7) For projects for which a certificate of completed

rehabilitation is issued for a tax year beginning before January 1,

2009, if a qualified taxpayer is a partnership, limited liability

company, or subchapter S corporation, the qualified taxpayer may

assign all or any portion of a credit allowed under this section to

its partners, members, or shareholders, based on the partner's,

member's, or shareholder's proportionate share of ownership or

based on an alternative method approved by the department. A credit

assignment under this subsection is irrevocable and shall be made

in the tax year in which a certificate of completed rehabilitation

is issued. A qualified taxpayer may claim a portion of a credit and

assign the remaining credit amount. A partner, member, or

shareholder that is an assignee shall not subsequently assign a

credit or any portion of a credit assigned to the partner, member,

or shareholder under this subsection. A credit amount assigned

under this subsection may be claimed against the partner's,

member's, or shareholder's tax liability under this act or under

the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532. A

credit assignment under this subsection shall be made on a form

prescribed by the department. The qualified taxpayer and assignees

shall attach a copy of the completed assignment form to the

department in the tax year in which the assignment is made and

attach a copy of the completed assignment form to the annual return

required to be filed under this act for that tax year.

(8) For projects for which a certificate of completed

rehabilitation is issued for a tax year beginning after December

31, 2008, a qualified taxpayer may assign all or any portion of the

credit allowed under this section. A credit assignment under this

subsection is irrevocable and shall be made in the tax year in

which a certificate of completed rehabilitation is issued. A

qualified taxpayer may claim a portion of a credit and assign the

remaining amount. If the qualified taxpayer both claims and assigns

portions of the credit, the qualified taxpayer shall claim the

portion it claims in the tax year in which a certificate of

completed rehabilitation is issued pursuant to this section. An

assignee may subsequently assign the credit or any portion of the

credit assigned under this subsection to 1 or more assignees. An

assignment or subsequent reassignment of a credit can be made in

the year the certificate of completed rehabilitation is issued. A

credit assignment or subsequent reassignment under this section

shall be made on a form prescribed by the department. The

department or its designee shall review and issue a completed

assignment or reassignment certificate to the assignee or

reassignee. A credit amount assigned under this subsection may be

claimed against the assignees' tax under this act or under the

income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532. An

assignee or subsequent reassignee shall attach a copy of the

completed assignment certificate to the annual return required to

be filed under this act or under the income tax act of 1967, 1967

PA 281, MCL 206.1 to 206.532, for the tax year in which the

assignment or reassignment is made and the assignee or reassignee

first claims the credit, which shall be the same tax year.

(9) If the credit allowed under this section for the tax year

and any unused carryforward of the credit allowed by this section

exceed the taxpayer's tax liability for the tax year, that portion

that exceeds the tax liability for the tax year shall not be

refunded but may be carried forward to offset tax liability in

subsequent tax years for 10 years or until used up, whichever

occurs first. If a qualified taxpayer has an unused carryforward of

a credit under this section, the amount otherwise added under

subsection (10), (11), or (12) to the qualified taxpayer's tax

liability may instead be used to reduce the qualified taxpayer's

carryforward under this section. An unused carryforward of a credit

under section 39c of former 1975 PA 228 that was unused at the end

of the last tax year for which former 1975 PA 228 was in effect may

be claimed against the tax imposed under this act for the years the

carryforward would have been available under section 39c of former

1975 PA 228. For projects for which a certificate of completed

rehabilitation is issued for a tax year beginning after December

31, 2008 and for which the credit amount allowed is less than

$250,000.00, a qualified taxpayer may elect to forgo the carryover

period and receive a refund of the amount of the credit that

exceeds the qualified taxpayer's tax liability. The amount of the

refund shall be equal to 90% of the amount of the credit that

exceeds the qualified taxpayer's tax liability. An election under

this subsection shall be made in the year that a certificate of

completed rehabilitation is issued and shall be irrevocable.

(10) For tax years beginning before January 1, 2009, if the

taxpayer sells an historic resource for which a credit was claimed

under this section or under section 39c of former 1975 PA 228 less

than 5 years after the year in which the credit was claimed, the

following percentage of the credit amount previously claimed

relative to that historic resource shall be added back to the tax

liability of the taxpayer in the year of the sale:

(a) If the sale is less than 1 year after the year in which

the credit was claimed, 100%.

(b) If the sale is at least 1 year but less than 2 years after

the year in which the credit was claimed, 80%.

after the year in which the credit was claimed, 60%.

(d) If the sale is at least 3 years but less than 4 years

after the year in which the credit was claimed, 40%.

(e) If the sale is at least 4 years but less than 5 years

after the year in which the credit was claimed, 20%.

(f) If the sale is 5 years or more after the year in which the

credit was claimed, an addback to the taxpayer's tax liability

shall not be made.

(11) For tax years beginning before January 1, 2009, if a

certification of completed rehabilitation is revoked under

subsection (5) less than 5 years after the year in which a credit

was claimed under this section or under section 39c of former 1975

PA 228, the following percentage of the credit amount previously

claimed relative to that historic resource shall be added back to

the tax liability of the taxpayer in the year of the revocation:

(a) If the revocation is less than 1 year after the year in

which the credit was claimed, 100%.

(b) If the revocation is at least 1 year but less than 2 years

after the year in which the credit was claimed, 80%.

years after the year in which the credit was claimed, 60%.

(d) If the revocation is at least 3 years but less than 4

years after the year in which the credit was claimed, 40%.

(e) If the revocation is at least 4 years but less than 5

years after the year in which the credit was claimed, 20%.

(f) If the revocation is 5 years or more after the year in

which the credit was claimed, an addback to the taxpayer's tax

liability shall not be made.

(12) Except as otherwise provided under subsection (13), for

tax years beginning after December 31, 2008, if a certificate of

completed rehabilitation is revoked under subsection (5), a

preapproval letter is revoked under subsection (23)(b), or an

historic resource is sold or disposed of less than 5 years after

the historic resource is placed in service as defined in section

47(b)(1) of the internal revenue code and related treasury

regulations or if a certificate of completed rehabilitation issued

after December 1, 2008 is revoked under subsection (5) during a tax

year beginning after December 31, 2008, a preapproval letter issued

after December 1, 2008 is revoked under subsection (23)(b) during a

tax year beginning after December 31, 2008, or an historic resource

is sold or disposed of less than 5 years after the historic

resource is placed in service during a tax year beginning after

December 31, 2008, the following percentage of the credit amount

previously claimed relative to that historic resource shall be

added back to the tax liability of the qualified taxpayer that

received the certificate of completed rehabilitation and not the

assignee in the year of the revocation:

(a) If the revocation is less than 1 year after the historic

resource is placed in service, 100%.

(b) If the revocation is at least 1 year but less than 2 years

after the historic resource is placed in service, 80%.

years after the historic resource is placed in service, 60%.

(d) If the revocation is at least 3 years but less than 4

years after the historic resource is placed in service, 40%.

(e) If the revocation is at least 4 years but less than 5

years after the historic resource is placed in service, 20%.

(f) If the revocation is at least 5 years or more after the

historic resource is placed in service, an addback to the qualified

taxpayer tax liability shall not be required.

(13) Subsection (12) shall not apply if the qualified taxpayer

enters into a written agreement with the ~~state historic~~

~~preservation office~~ MSHDA that will allow for the transfer or sale

of the historic resource and provides the following:

(a) Reasonable assurance that subsequent to the transfer the

property will remain a historic resource during the 5-year period

after the historic resource is placed in service.

(b) A method that the department can recover an amount from

the taxpayer equal to the appropriate percentage of credit added

back as described under subsection (12).

sold or transferred, stating that the property must remain a

historic resource throughout the 5-year period after the historic

resource is placed in service.

(d) A provision for the payment by the taxpayer of all legal

and professional fees associated with the drafting, review, and

recording of the written agreement required under this subsection.

(14) The ~~department of history, arts, and libraries through~~

~~the Michigan historical center~~ MSHDA may impose a fee to cover the

administrative cost of implementing the program under this section.

(15) The qualified taxpayer shall attach all of the following

to the qualified taxpayer's annual return required under this act

or under the income tax act of 1967, 1967 PA 281, MCL 206.1 to

206.532, if applicable, on which the credit is claimed:

(a) Certification of completed rehabilitation.

(b) Certification of historic significance related to the

historic resource and the qualified expenditures used to claim a

credit under this section.

assignee has assigned any portion of a credit allowed under this

section or if the taxpayer is an assignee of any portion of a

credit allowed under this section.

(16) The ~~department of history, arts, and libraries shall~~

MSHDA may promulgate rules to implement this section pursuant to

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

to 24.328.

(17) The total of the credits claimed under subsection (2) and

section 266 of the income tax act of 1967, 1967 PA 281, MCL

206.266, for a rehabilitation project shall not exceed 25% of the

total qualified expenditures eligible for the credit under

subsection (2) for that rehabilitation project.

(18) The ~~department of history, arts, and libraries through~~

~~the Michigan historical center~~ MSHDA shall report all of the

following to the legislature annually for the immediately preceding

state fiscal year:

(a) The fee schedule used by the ~~center~~ authority and the

total amount of fees collected.

(b) A description of each rehabilitation project certified.

project.

(19) In addition to the credit allowed under subsection (2)

and subject to the criteria under this subsection and subsections

(21), (22), and (23), for tax years that begin on and after January

1, 2009 a qualified taxpayer that has a preapproval letter issued

on or before December 31, 2013 may claim an additional credit that

has been approved under this subsection or subsection (20) against

the tax imposed by this act equal to a percentage established in

the taxpayer's preapproval letter of the qualified taxpayer's

qualified expenditures for the rehabilitation of an historic

resource or the actual amount of the qualified taxpayer's qualified

expenditures incurred during the completion of the rehabilitation

of an historic resource, whichever is less. The total amount of all

additional credits approved under this subsection shall not exceed

$8,000,000.00 in calendar year ending December 31, 2009;

$9,000,000.00 in calendar year ending December 31, 2010;

$10,000,000.00 in calendar year ending December 31, 2011;

$11,000,000.00 in calendar year ending December 31, 2012; and

$12,000,000.00 in calendar year ending December 31, 2013 and,

except as otherwise provided under this subsection, at least, 25%

of the allotted amount for additional credits approved under this

subsection during each calendar year shall be allocated to

rehabilitation plans that have $1,000,000.00 or less in qualified

expenditures. On October 1 of each calendar year, if the total of

all credits approved under subdivision (a) for the calendar year is

less than the minimum allotted amount, the department of history,

arts, and libraries may use the remainder of that allotted amount

to approve applications for additional credits submitted under

subdivision (b) for that calendar year. To be eligible for the

additional credit under this subsection, the taxpayer shall apply

to and receive a preapproval letter and comply with the following:

(a) For a rehabilitation plan that has $1,000,000.00 or less

in qualified expenditures, the taxpayer shall apply to the

~~department of history, arts, and libraries~~ MSHDA for approval of

the additional credit under this subsection. Subject to the

limitation provided under this subsection, the ~~director of the~~

~~department of history, arts, and libraries or his or her designee~~

authority is authorized to approve an application under this

subdivision and determine the percentage of at least 10% but not

more than 15% of the taxpayer's qualified expenditures for which he

or she may claim an additional credit. If the ~~director of the~~

~~department of history, arts, and libraries or his or her designee~~

authority approves the application under this subdivision, then he

~~or she~~ the authority shall issue a preapproval letter to the

taxpayer that states that the taxpayer is a qualified taxpayer and

the maximum percentage of the qualified expenditures on which a

credit may be claimed for the rehabilitation plan when it is

complete and a certification of completed rehabilitation is issued.

(b) For a rehabilitation plan that has more than $1,000,000.00

in qualified expenditures, the taxpayer shall apply to the

~~department of history, arts, and libraries~~ MSHDA for approval of

the additional credit under this subsection. The ~~director of the~~

~~department of history, arts, and libraries or his or her designee~~

authority, subject to the approval of the president of the Michigan

strategic fund or his or her designee, is authorized to approve an

application under this subdivision and determine the percentage of

up to 15% of the taxpayer's qualified expenditures for which he or

she may claim an additional credit. An application shall be

approved or denied not more than 15 business days after the

~~director of the department of history, arts, and libraries or his~~

~~or her designee~~ authority has reviewed the application, determined

the percentage amount of the credit for that applicant, and

submitted the same to the president of the Michigan strategic fund

or his or her designee. If the president of the Michigan strategic

fund or his or her designee does not approve or deny the

application within 15 business days after the application is

received from the ~~department of history, arts, and libraries~~

authority, the application is considered approved and the credit

awarded in the amount as determined by the ~~director of the~~

~~department of history, arts, and libraries or his or her designee~~

authority. If the president of the Michigan strategic fund or his

or her designee approves the application under this subdivision,

the director of the ~~department of history, arts, and libraries or~~

~~his or her designee~~ authority shall issue a preapproval letter to

the taxpayer that states that the taxpayer is a qualified taxpayer

and the maximum percentage of the qualified expenditures on which a

credit may be claimed for the rehabilitation plan when it is

complete and a certification of completed rehabilitation is issued.

(20) ~~The director of the department of history, arts, and~~

~~libraries or his or her designee~~ Except as otherwise provided under

this subsection, the Michigan state housing development authority,

subject to the approval of the president of the Michigan strategic

fund and the state treasurer, may approve 3 additional credits

during the 2009 calendar year of up to 15% of the qualified

taxpayer's qualified expenditures, and 2 additional credits during

the 2010, 2011, 2012, and 2013 calendar years of up to 15% of the

qualified taxpayer's qualified expenditures, for certain

rehabilitation plans that the ~~director of the department of~~

~~history, arts, and libraries or his or her designee~~ authority

determines is a high community impact rehabilitation plan that will

have a significantly greater historic, social, and economic impact

than those plans described under subsection (19)(a) and (b). The

Michigan state housing development authority, subject to the

approval of the president of the Michigan strategic fund and the

state treasurer, may use 1 of the 2 additional credits available

during the 2010 calendar year to approve an additional credit

during the 2009 calendar year of up to 15% of the qualified

taxpayer's qualified expenditures and 1 of the 2 additional credits

available during the 2011 calendar year to approve an additional

credit during the 2010 calendar year of up to 15% of the qualified

taxpayer's qualified expenditures. To be eligible for the

additional credit under this subsection, the taxpayer shall apply

to and receive a preapproval letter from the ~~department of history,~~

~~arts, and libraries~~ authority. An application shall be approved or

denied not more than 15 business days after the ~~director of the~~

~~department of history, arts, and libraries or his or her designee~~

authority has reviewed the application, determined the percentage

amount of the credit for that applicant, and submitted the same to

the president of the Michigan strategic fund and the state

treasurer. If the president of the Michigan strategic fund and the

state treasurer do not approve or deny the application within 15

business days after the application is received from the ~~department~~

~~of history, arts, and libraries~~ authority, the application is

considered approved and the credit awarded in the amount as

determined by the ~~director of the department of history, arts, and~~

~~libraries or his or her designee~~ authority. If the president of the

Michigan strategic fund and the state treasurer approve the

application under this subdivision, the ~~director of the department~~

~~of history, arts, and libraries or his or her designee~~ authority

shall issue a preapproval letter to the taxpayer that states that

the taxpayer is a qualified taxpayer and the maximum percentage of

the qualified expenditures on which a credit may be claimed for the

high community impact rehabilitation plan when it is complete and a

certification of completed rehabilitation is issued. Before

approving a credit under this subsection, the ~~director of the~~

~~department of history, arts, and libraries or his or her designee~~

authority shall consider all of the following criteria to the

extent reasonably applicable:

(a) The importance of the historic resource to the community

in which it is located.

(b) If the rehabilitation of the historic resource will act as

a catalyst for additional rehabilitation or revitalization of the

community in which it is located.

resource will have for creating or preserving jobs and employment

in the community in which it is located.

(d) Other social benefits the rehabilitation of the historic

resource will bring to the community in which it is located.

(e) The amount of local community and financial support for

the rehabilitation of the historic resource.

(f) The taxpayer's financial need of the additional credit.

(g) Whether the taxpayer is eligible for the credit allowed

under section 47(a)(2) of the internal revenue code.

(h) Any other criteria that the director of the department of

history, arts, and libraries, the president of the Michigan

strategic fund, and the state treasurer consider appropriate for

the determination of approval under this subsection.

(21) The maximum amount of credit that a taxpayer or an

assignee may claim under subsection (20) during a tax year is

$3,000,000.00. If the amount of the credit approved in the

taxpayer's certificate of completed renovation is greater than

$3,000,000.00 that portion that exceeds the cap shall be carried

forward to offset tax liability in subsequent tax years until used

up.

(22) Before approving a credit, determining the amount of such

credit, and issuing a preapproval letter for such credit under

subsection (19) or before considering an amendment to the

preapproval letter, the ~~director of the department of history,~~

~~arts, and libraries or his or her designee~~ MSHDA shall consider the

following criteria to the extent reasonably applicable:

(a) The importance of the historic resource to the community.

(b) The physical condition of the historic resource.

(d) The overall economic impact the renovation will have on

the community.

(e) Any other criteria that the ~~director of the department of~~

~~history, arts, and libraries~~ authority and the president of the

Michigan strategic fund, as applicable, consider appropriate for

the determination of approval under subsection (19).

(23) The ~~director of the department of history, arts, and~~

~~libraries or his or her designee~~ authority may at any time before a

certification of completed rehabilitation is issued for a credit

for which a preapproval letter was issued pursuant to subsection

(19) do the following:

(a) Subject to the limitations and parameters under subsection

(19), make amendments to the preapproval letter, which may include

revising the amount of qualified expenditures for which the

taxpayer may claim the additional credit under subsection (19).

(b) Revoke the preapproval letter if ~~he or she~~ the authority

determines that there has not been substantial progress toward

completion of the rehabilitation plan or that the rehabilitation

plan cannot be completed. The ~~director of the department of~~

~~history, arts, and libraries or his or her designee~~ authority shall

provide the qualified taxpayer with a notice of his or her intent

to revoke the preapproval letter 45 days prior to the proposed date

of revocation.

(24) If a preapproval letter is revoked under subsection

(23)(b), the amount of the credit approved under that preapproval

letter shall be added to the annual cap in the calendar year that

the preapproval letter is revoked. After a certification of

completed rehabilitation is issued for a rehabilitation plan

approved under subsection (19), if the ~~director of the department~~

~~of history, arts, and libraries or his or her designee~~ authority

determines that the actual amount of the additional credit to be

claimed by the taxpayer for the calendar year is less than the

amount approved under the preapproval letter, the difference shall

be added to the annual cap in the calendar year that the

certification of completed rehabilitation is issued.

(25) Unless otherwise specifically provided under subsections

(19) through (24), all other provisions under this section such as

the recapture of credits, assignment of credits, and refundability

of credits in excess of a qualified taxpayer's tax liability apply

to the additional credits issued under subsections (19) and (20).

(26) In addition to meeting the criteria in subsection (20)(a)

through (h), 2 3 of the 3 credits available under subsection (20),

including the credit used from the 2010 calendar year, and approved

during the 2009 calendar year for a high community impact

rehabilitation plan shall be for an application meeting 1 of the

following criteria:

(a) All of the following:

(i) The historic resource must be at least 80 70 years old.

(ii) The historic resource must comprise at least ~~75,000~~

500,000 total square feet.

(iii) The historic resource must be located in a county with a

population of more than 1,500,000.

(iv) The historic resource must be located in a city with an

unemployment rate that is at least 2% higher than the current state

average unemployment rate at the time of the application.

(v~~) The historic resource receives a federal earmark~~

~~appropriation and is the former home of a former professional~~

~~sports team.~~

(b) All of the following:

(i) The historic resource must be at least 85 years old.

(ii) The historic resource must comprise at least 120,000 total

square feet.

(iii) The historic resource must be located in a county with a

population of more than 400,000 and less than 500,000.

(iv) The historic resource must be located in a city with a

population of more than 100,000 and less than 125,000.

(v) The historic resource must be located in a city with an

unemployment rate that is at least 2% higher than the current state

average unemployment rate at the time of the application.

(i) The historic resource must be at least 70 years old.

(ii) The historic resource must comprise at least 180,000 total

square feet but not more than 250,000 square feet and must exceed

30 stories in height.

(iii) The historic resource must be located in a county with a

population of more than 1,500,000.

(iv) The historic resource must be located in a city with an

unemployment rate that is at least 2% higher than the current state

average unemployment rate at the time of the application.

(v) The historic resource must be located in a historic

district that contains a park bifurcated by an all-American road

designated by the federal highway administration in a city with a

population of more than 750,000.

(vi) The historic resource must have been included in a

rehabilitation plan for which an application was submitted by the

application deadline for consideration of an additional credit for

the 2009 calendar year for a high community impact rehabilitation

plan.

(27) In addition to meeting the criteria in subsection (20)(a)

through (h), 1 of the credits available under subsection (20),

including the credit used from the 2011 calendar year, and approved

during the 2010 calendar year for a high community impact

rehabilitation plan shall be for an application that meets all of

the following criteria:

(a) The historic resource must be at least 85 years old.

(b) The historic resource must comprise at least 85,000 total

square feet.

population of more than 500,000 but less than 600,000 according to

the official 2000 federal decennial census.

(d) The historic resource must be located in a city with a

population of more than 180,000 but less than 200,000 according to

the official 2000 federal decennial census.

(e) The historic resource is or was formerly owned by the

United States government or formerly housed agencies of the United

States government, or both.

(f) The historic resource houses facilities operated in

conjunction with a public university.

(28) ~~(27)~~ For purposes of this section, taxpayer includes a

person subject to the tax imposed under chapter 2A or 2B.

(29) ~~(28)~~ As used in this section:

(a) "Contributing resource" means an historic resource that

contributes to the significance of the historic district in which

it is located.

(b) "Historic district" means an area, or group of areas not

necessarily having contiguous boundaries, that contains 1 resource

or a group of resources that are related by history, architecture,

archaeology, engineering, or culture.

historic building, structure, site, object, feature, or open space

located within an historic district designated by the national

or a local unit acting under the local historic districts act, 1970

PA 169, MCL 399.201 to 399.215, or that is individually listed on

the state register of historic sites or national register of

historic places, and includes all of the following:

(i) An owner-occupied personal residence or a historic resource

located within the property boundaries of that personal residence.

(ii) An income-producing commercial, industrial, or residential

resource or an historic resource located within the property

boundaries of that resource.

(iii) A resource owned by a governmental body, nonprofit

organization, or tax-exempt entity that is used primarily by a

taxpayer lessee in a trade or business unrelated to the

governmental body, nonprofit organization, or tax-exempt entity and

that is subject to tax under this act.

(iv) A resource that is occupied or utilized by a governmental

body, nonprofit organization, or tax-exempt entity pursuant to a

long-term lease or lease with option to buy agreement.

(v) Any other resource that could benefit from rehabilitation.

(d) "Last tax year" means the taxpayer's tax year under former

1975 PA 228 that begins after December 31, 2006 and before January

1, 2008.

(e) "Local unit" means a county, city, village, or township.

(f) "Long-term lease" means a lease term of at least 27.5

years for a residential resource or at least 31.5 years for a

nonresidential resource.

(g) "Michigan ~~historical center" or "center" means the state~~

~~historic preservation office of the Michigan historical center of~~

~~the department of history, arts, and libraries or its successor~~

~~agency~~ state housing development authority", "MSHDA", or

"authority" means the public body corporate and politic created by

section 21 of the state housing development authority act of 1966,

1966 PA 346, MCL 125.1421.

(h) "Michigan strategic fund" means the Michigan strategic

fund created under the Michigan strategic fund act, 1984 PA 270,

MCL 125.2001 to 125.2094.

(i) "Open space" means undeveloped land, a naturally

landscaped area, or a formal or man-made landscaped area that

provides a connective link or a buffer between other resources.

(j) "Person" means an individual, partnership, corporation,

association, governmental entity, or other legal entity.

(k) "Preapproval letter" means a letter issued by the ~~director~~

~~of the department of history, arts, and libraries or his or her~~

~~designee~~ authority that indicates the date that the complete part 2

application was received and the amount of the credit allocated to

the project based on the estimated rehabilitation cost included in

the application.

(l) "Qualified expenditures" means capital expenditures that

qualify, or would qualify except that the taxpayer entered into an

agreement under subsection (13), for a rehabilitation credit under

section 47(a)(2) of the internal revenue code if the taxpayer is

eligible for the credit under section 47(a)(2) of the internal

revenue code or, if the taxpayer is not eligible for the credit

under section 47(a)(2) of the internal revenue code, the qualified

expenditures that would qualify under section 47(a)(2) of the

internal revenue code except that the expenditures are made to an

historic resource that is not eligible for the credit under section

47(a)(2) of the internal revenue code that were paid. Qualified

expenditures do not include capital expenditures for nonhistoric

additions to an historic resource except an addition that is

required by state or federal regulations that relate to historic

preservation, safety, or accessibility.

(m) "Qualified taxpayer" means a person that either owns the

resource to be rehabilitated or has a long-term lease agreement

with the owner of the historic resource and that has qualified

expenditures for the rehabilitation of the historic resource equal

to or greater than 10% of the state equalized valuation of the

property. If the historic resource to be rehabilitated is a portion

of an historic or nonhistoric resource, the state equalized

valuation of only that portion of the property shall be used for

purposes of this subdivision. If the assessor for the local tax

collecting unit in which the historic resource is located

determines the state equalized valuation of that portion, that

assessor's determination shall be used for purposes of this

subdivision. If the assessor does not determine that state

equalized valuation of that portion, qualified expenditures, for

purposes of this subdivision, shall be equal to or greater than 5%

of the appraised value as determined by a certified appraiser. If

the historic resource to be rehabilitated does not have a state

equalized valuation, qualified expenditures for purposes of this

subdivision shall be equal to or greater than 5% of the appraised

value of the resource as determined by a certified appraiser.

(n) "Rehabilitation plan" means a plan for the rehabilitation

of an historic resource that meets the federal secretary of the

interior's standards for rehabilitation and guidelines for

rehabilitation of historic buildings under 36 CFR part 67.