HB-5709, As Passed House, June 3, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5709

                     (As amended June 3, 2004)                              

                                                                             A bill to amend 1975 PA 228, entitled                                             

"Single business tax act,"                                                  

(MCL 208.1 to 208.145) by adding section 37g.                               

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 37g.  (1) For tax years that begin after December 31,                  

2   2003, a taxpayer who is a nursery [      ] that has a documented            

3   loss of $5,000.00 or more for the tax year attributable to either           

4   of the following may claim a credit against the tax imposed by              

5   this act equal to the amount of the loss or $5,000.00, whichever            

6   is less:                                                                    

7       (a) Ash trees in inventory as nursery stock at the beginning                

8   of the tax year that cannot be sold because the nursery stock is            

9   in a quarantine zone as determined by the department of                     

10  agriculture.                                                                

11      (b) Ash trees that were in inventory as nursery stock and                   

House Bill No. 5709 (H-1) as amended June 3, 2004

1   were destroyed during the tax year because they were infested               

2   with emerald ash borer or suspected of being infested with                  

3   emerald ash borer.                                                          

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

5   and any unused carryforward of the credit allowed under this                

6   section exceed the tax liability of the taxpayer for the tax                

7   year, the excess shall not be refunded, but may be carried                  

8   forward as an offset to the tax liability in subsequent tax years           

9   for 10 tax years or until the excess credit is used up, whichever           

10  occurs first.  As used in this section, "nursery [      ]" and              

11  "nursery stock" mean those terms as defined in section 2 of the             

12  insect pest and plant disease act, 1931 PA 189, MCL 286.202.