April 22, 2009, Introduced by Reps. Proos, Horn, Opsommer, Lori, Calley, Tyler, Bolger, Pearce, Schuitmaker and Griffin and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 278.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 278. (1) Subject to the limitation under subsection (2),
for tax years that begin after December 31, 2008 and before January
1, 2019, a taxpayer that owns and operates a qualified agribusiness
may claim a credit against the tax imposed under this act equal to
15% of the qualified agribusiness expenses incurred by the taxpayer
during the tax year.
(2) The total of all credits allowed under this section shall
not exceed $1,000,000.00 per calendar year.
(3) 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.
(4) The department of agriculture may inspect an agribusiness
at any time and may revoke its designation as a qualified
agribusiness if the taxpayer does not continue to operate the
agribusiness as a qualified agribusiness. If the department of
agriculture revokes the taxpayer's designation as a qualified
agribusiness less than 5 years after the year in which a credit was
claimed under this section, the following percentage of the credit
amount previously claimed relative to that agribusiness 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%.
(c) If the revocation is at least 2 years but less than 3
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.
(5) As used in this section:
(a) "Eco friendly" means energy efficient, water saving, or
fewer air emissions or any combination thereof.
(b) "Qualified agribusiness" means an agribusiness that is
designated by the department of agriculture as qualified.
(c) "Qualified agribusiness expenses" means any expenses
incurred or paid for the purchase of eco friendly equipment,
machinery, or systems that are directly related to the operation of
a qualified agribusiness.