April 22, 2009, Introduced by Senators KAHN, BIRKHOLZ, KUIPERS and ALLEN and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 430 (MCL 208.1430), as added by 2008 PA 270.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
430. (1) Except as otherwise provided under subsection
(6)
and subject Subject to the limitations under subsection (2),
for tax years that begin on or after January 1, 2009, a qualified
taxpayer that has entered into an agreement with the Michigan
economic growth authority that provides that the taxpayer will
construct and operate in this state a new facility for development
and manufacturing of photovoltaic energy, photovoltaic systems, or
other photovoltaic technology may claim a credit against the tax
imposed by this act equal to 50% of the capital investments made by
the taxpayer in that new facility during the tax year.
(2) The Michigan economic growth authority shall not enter
into
an agreement under this section after November 1, 2008 January
1, 2013. The total amount of credits allowed under this section for
all tax years shall not exceed $25,000,000.00. An agreement shall
specify all of the following:
(a) The amount of capital investment that will be made in a
new facility engaged in the development and manufacturing of
photovoltaic energy, photovoltaic systems, and other photovoltaic
technology.
(b) The number of qualified new jobs at the facility at which
the investment will be made.
(c) The total credit that may be claimed under this section.
(3) The credit allowed under this section shall be taken by a
qualified taxpayer in equal installments over 2 years beginning
with the tax year in which the certification was issued. If in any
of those years the credit allowed under this section for the tax
year exceeds the taxpayer's or assignee's tax liability for the tax
year, that portion that exceeds the tax liability for the tax year
shall be refunded.
(4) A taxpayer shall not claim a credit under this section
unless the Michigan economic growth authority has issued a
certificate to the taxpayer. The taxpayer shall attach the
certificate to the annual return filed under this act on which a
credit under this section is claimed. The certificate required
under this subsection shall state all of the following:
(a) The taxpayer is located in this state and engaged in the
development and manufacturing of photovoltaic energy, photovoltaic
systems, or other photovoltaic technology and qualifies for the
credit under this section.
(b) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the taxpayer
and, for a taxpayer that is a unitary business group, the federal
employer identification number or Michigan department of treasury
number assigned to the member of the group engaged in this state in
the development and manufacturing of photovoltaic energy,
photovoltaic systems, or other photovoltaic technology.
(c) The total amount of capital investments made during the
tax year and the amount of the credit under this section for which
the taxpayer is allowed to claim for the designated tax year.
(5) A taxpayer or assignee that claims a credit under this
section and subsequently fails to meet the requirements of this
section or any other conditions established by the Michigan
economic growth authority in the agreement provided for in this
section in order to obtain a certificate for which the credit was
claimed under this section may, as to be determined by the Michigan
economic growth authority, have its credit reduced or terminated or
have a percentage of the credit amount previously claimed under
this section added back to the tax liability of the taxpayer in the
tax year that the taxpayer or assignee fails to comply with this
section.
(6) A qualified taxpayer may assign all or a portion of a
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 is issued. However, a qualified taxpayer may
also convey the right to obtain an assignment of the credit under
this section after an agreement has been approved by the Michigan
economic growth authority and before a certificate has been issued.
A qualified taxpayer may claim a portion of a credit and assign the
remaining credit amount. The credit assignment under this
subsection shall be made on a form prescribed by the Michigan
economic growth authority. The Michigan economic growth authority
or its designee shall review and issue a completed assignment
certificate to the assignee. An assignee shall attach a copy of the
completed assignment certificate to its annual return required
under this act, for the tax year in which the assignment is made
and the assignee first claims a credit, which shall be the same tax
year. In addition to all other procedures and requirements under
this section, the following apply:
(a) The credit shall be assigned based on the schedule
contained in the certificate.
(b) If the qualified taxpayer assigns all or a portion of the
credit amount, the qualified taxpayer shall assign the annual
credit amount for each tax year separately.
(c) More than 1 annual credit amount may be assigned to any 1
assignee, and the qualified taxpayer may assign all or a portion of
each annual credit amount to any assignee.
(7) A taxpayer that has entered into an agreement with the
Michigan economic growth authority for a credit under sections 432
through 432d is not eligible for the credit under this section.
(8) As used in this section:
(a) "Capital investment" means the cost, including fabrication
and installation, paid or accrued in the tax year of property of a
type that is, or under the internal revenue code will become,
eligible for depreciation, amortization, or accelerated capital
cost recovery for federal income tax purposes, provided that the
property is physically located in this state for use in a business
activity in this state.
(b) "Full-time job" means a job performed by an individual for
35 hours or more each week and whose income and social security
taxes are withheld by 1 or more of the following:
(i) A qualified taxpayer.
(ii) An employee leasing company on behalf of a qualified
taxpayer.
(iii) A professional employer organization on behalf of a
qualified taxpayer.
(c) "Michigan economic growth authority" means the Michigan
economic growth authority created in the Michigan economic growth
authority act, 1995 PA 24, MCL 207.801 to 207.810.
(d) "Qualified new job" means a full-time job created by a
qualified taxpayer at a facility or facilities that is in excess of
the number of full-time jobs a qualified taxpayer maintained in
this state or at a facility prior to the expansion or location, as
determined by the authority.
(e) "Qualified taxpayer" means a taxpayer that has entered an
agreement to create at least 700 qualified new jobs and to make at
least $50,000,000.00 in a qualified capital investment of which
$25,000,000.00 shall be made prior to the issuance of a certificate
under this section.
(f) "Photovoltaic cells" means an integrated device consisting
of layers of semiconductor materials and electric constructs
capable of converting incident light directly into electricity.
(g) "Photovoltaic energy" means solar energy.
(h) "Photovoltaic modules" means an assembly of interconnected
photovoltaic cells.
(i) "Photovoltaic systems" means solar energy devices composed
of 1 or more photovoltaic cells or photovoltaic modules, and
inverter or other power conditioning unit or photovoltaic
technology designed to deliver power of a selected current and
voltage, wires, and other electrical connectors in order to
generate electricity, heat or cool a residential structure, provide
hot water for use in a residential structure, or provide solar
process heat. Batteries for power storage may also be included in
photovoltaic systems.
(j) "Photovoltaic technology" means solar power technology
that uses photovoltaic cells and modules to convert light from the
sun directly into electricity. Photovoltaic technology includes
equipment, component parts, materials, electronic devices, testing
equipment, and other related systems that are specifically designed
or fabricated and used primarily for 1 or more of the following:
(i) The storage, generation, reformation, or distribution of
clean fuels integrated within a photovoltaic system.
(ii) The process of utilizing photovoltaic energy to generate
electricity for use by consumers.
(k) "Property" means section 1245 property and section 1250
property as those terms are defined in sections 1245 and 1250 of
the internal revenue code.