SENATE BILL No. 986

 

 

February 29, 2012, Introduced by Senators BIEDA, KOWALL and BRANDENBURG and referred to the Committee on Finance.

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.713) by adding section 645.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 645. (1) Subject to the limitations provided under this

 

section, for tax years that begin after December 31, 2013 and each

 

tax year thereafter through the 2023 tax year, an insurance company

 

that purchases a PTP certificate under the Michigan insurance

 

premium tax prepayment act earns a vested right to a tax credit

 

under this section. The holder of the certificate may claim a

 

credit against the tax imposed by this part or section 476a of the

 

insurance code of 1956, 1956 PA 218, MCL 500.476a, equal to 10% of

 

the amount stated in the purchase price of the certificate.

 

     (2) The amount of the credit allowed to be claimed under this

 

section shall not exceed the tax liability of the taxpayer for the


 

tax year. If the amount of the credit allowed under this section

 

and any unused carryforward of the credit allowed by this section

 

exceed the tax liability of the taxpayer for the tax year, that

 

portion that exceeds the tax liability 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.

 

     (3) A taxpayer shall not claim a credit under this section

 

unless the department or its designee has issued a PTP certificate

 

to the taxpayer. The taxpayer shall attach a copy of the

 

certificate together with a signed and notarized statement of the

 

taxpayer attesting to the authenticity of the certificate to the

 

annual return filed under this part or section 476a of the

 

insurance code of 1956, 1956 PA 218, MCL 500.476a, on which a

 

credit under this section is claimed.

 

     (4) A taxpayer may claim a portion of a credit and assign the

 

remaining credit amount. A credit amount assigned under this

 

subsection may be claimed against the assignee's tax liability

 

under this part or section 476a of the insurance code of 1956, 1956

 

PA 218, MCL 500.476a. A credit assignment under this subsection

 

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

 

and assignee shall send within 30 days after the transfer

 

assignment 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.

 

     (5) The total amount of PTP certificates that may be issued by

 

the department under the Michigan insurance premium tax prepayment


 

act shall not result in more than $900,000,000.00 in credits.

 

     (6) As used in this section, "PTP certificate" means that term

 

as defined in section 3 of the Michigan insurance premium tax

 

prepayment act.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 96th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 985                      __ (request no.

 

04158'11).

 

     (b) Senate Bill No. 987                    ____ (request no.

 

04158'11 b).