HB-5600, As Passed House, February 20, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5600

     A bill to amend 1996 PA 376, entitled

"Michigan renaissance zone act,"

by amending sections 3, 4, 8a, 8d, 8e, and 10 (MCL 125.2683,

125.2684, 125.2688a, 125.2688d, 125.2688e, and 125.2690), section 3

as amended by 2006 PA 304, section 4 as amended by 2006 PA 440,

section 8a as amended by 2006 PA 476, section 8d as amended by 2006

PA 93, section 8e as added by 2006 PA 270, and section 10 as

amended by 2007 PA 186.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. As used in this act:

     (a) "Agricultural processing facility" means 1 or more

facilities or operations that transform, package, sort, or grade

livestock or livestock products, agricultural commodities, or

plants or plant products, excluding forest products, into goods

that are used for intermediate or final consumption including goods

for nonfood use, and surrounding property.

     (b) "Board" means the state administrative board created in

1921 PA 2, MCL 17.1 to 17.3.

     (c) "Development plan" means a written plan that addresses the

criteria in section 7 and includes all of the following:

     (i) A map of the proposed renaissance zone that indicates the

geographic boundaries, the total area, and the present use and

conditions generally of the land and structures within those

boundaries.

     (ii) Evidence of community support and commitment from

residential and business interests.

     (iii) A description of the methods proposed to increase economic

opportunity and expansion, facilitate infrastructure improvement,

and identify job training opportunities.

     (iv) Current social, economic, and demographic characteristics

of the proposed renaissance zone and anticipated improvements in

education, health, human services, public safety, and employment if

the renaissance zone is created.

     (v) Any other information required by the board.

     (d) "Elected county executive" means the elected county

executive in a county organized under 1966 PA 293, MCL 45.501 to

45.521, or 1973 PA 139, MCL 45.551 to 45.573.

     (e) "Forest products processing facility" means 1 or more

facilities or operations that transform, package, sort, recycle, or

grade forest or paper products into goods that are used for

intermediate or final use or consumption or for the creation of

biomass or alternative fuels through the utilization of forest

products or forest residue, and surrounding property. Forest

products processing facility does not include an existing facility

or operation that is located in this state that relocates to a

renaissance zone for a forest products processing facility. Forest

products processing facility does not include a facility or

operation that engages primarily in retail sales.

     (f) "Local governmental unit" means a county, city, village,

or township.

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

association, limited liability company, governmental entity, or

other legal entity.

     (h) "Qualified local governmental unit" means either of the

following:

     (i) A county.

     (ii) A city, village, or township that contains an eligible

distressed area as defined in section 11 of the state housing

development authority act of 1966, 1966 PA 346, MCL 125.1411.

     (i) "Recovery zone" means a tool and die renaissance recovery

zone created in section 8d.

     (j) "Renaissance zone" means a geographic area designated

under this act.

     (k) "Renewable energy facility" means a system facility that

creates energy directly or fuel from a process using the wind, the

sun, trees, grasses, biosolids, algae, agricultural commodities or

residues from agricultural products processes, wood or forest

products processes, or from the paper products industries, and food

production and processing; trees and grasses grown specifically to

be used as energy crops; and gaseous fuels produced industry.

Renewable energy facility also includes a facility that creates

energy or fuels from solid biomass, biosolids, animal wastes, or

landfills or materials captured from landfills. Renewable energy

facility also includes a facility that focuses on research,

development, or manufacturing of systems or components of systems

used to create energy or fuel from the items described in this

subdivision as determined by the strategic fund board.

     (l) "Residential rental property" means that term as defined in

section 7ff of the general property tax act, 1893 PA 206, MCL

211.7ff.

     (m) "Review board" means the renaissance zone review board

created in section 5.

     (n) "Rural area" means an area that lies outside of the

boundaries of an urban area.

     (o) "Urban area" means an urbanized area as determined by the

economics and statistics administration, United States bureau of

the census according to the 1990 census.

     Sec. 4. (1) One or more qualified local governmental units may

apply to the review board to designate the qualified local

governmental unit or units as a renaissance zone if all of the

following criteria are met:

     (a) The geographic area of the proposed renaissance zone is

located within the boundaries of the qualified local governmental

unit or units that apply.

     (b) The application includes a development plan.

     (c) The proposed renaissance zone is not more than 5,000 acres

in size.

     (d) The renaissance zone does not contain more than 10

distinct geographic areas. Except as otherwise provided in this

subdivision, the minimum size of a distinct geographic area is not

less than 5 acres. A qualified local governmental unit or units may

designate not more than 4 8 distinct geographic areas in each

renaissance zone to have no minimum size requirement.

     (e) The application includes the proposed duration of

renaissance zone status, not to exceed 15 years, except as

otherwise provided in this section.

     (f) If the qualified local governmental unit has an elected

county executive, the county executive's written approval of the

application.

     (g) If the qualified local governmental unit is a city, that

city's mayor's written approval of the application.

     (2) A qualified local governmental unit may submit not more

than 1 application to the review board for designation as a

renaissance zone. A resolution provided by a city, village, or

township under section 7(2) does not constitute an application of a

city, village, or township for a renaissance zone under this act.

     (3) For a distinct geographic area described in subsection

(1)(d), a village may include publicly owned land within the

boundaries of any distinct geographic area.

     (4) Beginning December 1, 2006 through December 31, 2011, a

qualified local governmental unit or units in which a renaissance

zone was designated under section 8 or 8a(1) or (3) may designate

additional distinct geographic areas not to exceed a total of 10

distinct geographic areas upon application to and approval by the

board of the Michigan strategic fund if the distinct geographic

area is located in an eligible distressed area as defined in

section 11 of the state housing development authority act of 1966,

1966 PA 346, MCL 125.1411, or is contiguous to an eligible

distressed area, and if the additional distinct geographic area

will increase capital investment and or job creation. The duration

of renaissance zone status for the additional distinct geographic

areas shall not exceed 15 years.

     (5) Through December 31, 2002, if a qualified local

governmental unit or units designate additional distinct geographic

areas in a renaissance zone under subsection (4), the qualified

local governmental unit or units may extend the duration of the

renaissance zone status of 1 or more distinct geographic areas in

that renaissance zone until 2017 upon application to and approval

by the board.

     (6) Through December 31, 2002, a qualified local governmental

unit or units in which a renaissance zone was designated under

section 8 or 8a may, upon application to and approval by the board,

seek to extend the duration of renaissance zone status until 2017.

Upon application, the board may extend the duration of renaissance

zone status.

     (7) Through December 31, 2011, a qualified local governmental

unit or units in which a renaissance zone was designated under

section 8 or 8a(1) or (3) that has not experienced significant

development may, upon application to and approval by the board of

the Michigan strategic fund, seek to extend the duration of

renaissance zone status for 1 or more portions of the renaissance

zone if that zone or portion of a zone is in existence as of March

15, 2008, and if the extension will increase capital investment or

job creation. The board of the Michigan strategic fund may extend

renaissance zone status for 1 or more portions of the renaissance

zone under this subsection for a period of time not to exceed 15

years from the date of the application to the board of the Michigan

strategic fund under this subsection. However, beginning on the

effective date of the amendatory act that added this sentence, if

the board of the Michigan strategic fund extends the duration of 1

or more portions of a renaissance zone under this subsection, the

board of the Michigan strategic fund may revoke that extension if

the board determines that increased capital investment or job

creation will not begin within 1 year of the granting of the

extension or otherwise violates the terms of the written

development agreement between the owner of the real property and

the board of the Michigan strategic fund. Only the qualified local

governmental unit that is requesting the extension of time may

submit the application. If the board of the Michigan strategic fund

extends the duration of 1 or more portions of a renaissance zone,

the board of the Michigan strategic fund shall enter into a written

development agreement with the owner of all real property located

within the boundaries of the portions of the renaissance zone whose

duration has been extended. The written development agreement shall

include, but is not limited to, all of the following:

     (a) The duration of the extension.

     (b) The conditions under which the extension is granted.

     (c) The amount of capital investment.

     (d) The number of jobs to be created.

     (e) Any other conditions or requirements reasonably required

by the board of the Michigan strategic fund.

     Sec. 8a. (1) Except as provided in subsections (2), (3), and

(4), the board shall not designate more than 9 additional

renaissance zones within this state under this section. Not more

than 6 of the renaissance zones shall be located in urban areas and

not more than 5 of the renaissance zones shall be located in rural

areas. For purposes of determining whether a renaissance zone is

located in an urban area or rural area under this section, if any

part of a renaissance zone is located within an urban area, the

entire renaissance zone shall be considered to be located in an

urban area.

     (2) The board of the Michigan strategic fund described in

section 4 of the Michigan strategic fund act, 1984 PA 270, MCL

125.2004, may designate not more than 13 14 additional renaissance

zones within this state in 1 or more cities, villages, or townships

if that city, village, or township or combination of cities,

villages, or townships consents to the creation of a renaissance

zone within their boundaries. The board of the Michigan strategic

fund may designate not more than 1 of the 13 14 additional

renaissance zones described in this subsection as an alternative

energy zone. An alternative energy zone shall promote and increase

the research, development, testing, and manufacturing of

alternative energy technology, alternative energy systems, and

alternative energy vehicles, as those terms are defined in the

Michigan next energy authority act, 2002 PA 593, MCL 207.821 to

207.827. An alternative energy zone shall have a duration of

renaissance zone status for a period not to exceed 20 years as

determined by the board of the Michigan strategic fund. Not later

than April 16, 2004, the board of the Michigan strategic fund may

designate not more than 1 of the 13 14 additional renaissance zones

described in this subsection as a pharmaceutical renaissance zone.

A pharmaceutical renaissance zone shall promote and increase the

research, development, and manufacturing of pharmaceutical products

of an eligible pharmaceutical company. The board of the Michigan

strategic fund may designate not more than 8 of the additional 13

14 renaissance zones described in this subsection as a

redevelopment renaissance zone. A redevelopment renaissance zone

shall promote the redevelopment of existing industrial facilities

or the development of property for industrial purposes. Before

designating a renaissance zone under this subsection, the board of

the Michigan strategic fund may enter into a development agreement

with the city, township, or village in which the renaissance zone

will be located and the owner or developer of the facility or

property located in the renaissance zone. The development agreement

for a redevelopment renaissance zone described only in subsection

(6)(b)(vi) or (vii) may provide for the payment of 1 or more of the

taxes described in section 9.

     (3) In addition to the not more than 9 additional renaissance

zones described in subsection (1), the board may designate

additional renaissance zones within this state in 1 or more

qualified local governmental units if that qualified local

governmental unit or units contain a military installation that was

operated by the United States department of defense and was closed

in 1977 or after 1990.

     (4) Land owned by a county or the qualified local governmental

unit or units adjacent to a zone as described in subsection (3) may

be included in this zone.

     (5) Notwithstanding any other provision of this act, property

located in the alternative energy zone that is classified as

commercial real property under section 34c of the general property

tax act, 1893 PA 206, MCL 211.34c, and that the authority, with the

concurrence of the assessor of the local tax collecting unit,

determines is not used to directly promote and increase the

research, development, testing, and manufacturing of alternative

energy technology, alternative energy systems, and alternative

energy vehicles as those terms are defined in the Michigan next

energy authority act, 2002 PA 593, MCL 207.821 to 207.827, is not

eligible for any exemption, deduction, or credit under section 9.

     (6) As used in this section:

     (a) "Eligible pharmaceutical company" means a company that

meets all of the following criteria:

     (i) Is engaged primarily in manufacturing, research and

development, and sale of pharmaceuticals.

     (ii) Has not less than 8,499 employees located in this state,

all of whom are located within a 100-mile radius of each other.

     (iii) Of the total number of employees located in this state,

has not less than 4,800 engaged primarily in research and

development of pharmaceuticals.

     (b) "Redevelopment renaissance zone" means a renaissance zone

that meets 1 of the following:

     (i) All of the following:

     (A) Is located in a city with a population of more than 7,500

and less than 8,500 and is located in a county with a population of

more than 60,000 and less than 70,000.

     (B) Contains only all or a portion of an industrial site of

200 or more acres.

     (ii) All of the following:

     (A) Is located in a city with a population of more than 13,000

and less than 14,000 and is located in a county with a population

of more than 1,000,000 and less than 1,300,000.

     (B) Contains only all or a portion of an industrial site of

300 or more contiguous acres.

     (iii) All of the following:

     (A) Is located in a township with a population of more than

5,500 and is located in a county with a population of less than

24,000.

     (B) Contains only all or a portion of an industrial site of

more than 850 acres and has railroad access.

     (iv) All of the following:

     (A) Is located in a city with a population of more than 40,000

and less than 44,000 and is located in a county with a population

of more than 81,000 and less than 87,000.

     (B) Contains only all or a portion of an industrial site of

more than 475 acres.

     (v) All of the following:

     (A) Is located in a city with a population of more than 21,000

and less than 26,000 and is located in a county with a population

of more than 573,000 and less than 625,000.

     (B) Contains only all or a portion of an industrial site of

less than 45 acres in size.

     (vi) All of the following:

     (A) Is located in a city with a population of more than

190,000 and less than 250,000 and is located in a county with a

population of more than 573,000 and less than 625,000.

     (B) Contains only all or a portion of an industrial site of

more than 14 acres and less than 16 acres in size.

     (C) Is approved by the board of the Michigan strategic fund on

or before April 1, 2007.

     (vii) All of the following:

     (A) Is located in a city with a population of more than 35,500

and less than 36,800 and is located in a county with a population

of more than 157,000 and less than 162,000.

     (B) Contains only all or a portion of an industrial site

comprised of 1 or more adjacent parcels totaling 5 or more acres.

     (C) Is approved by the board of the Michigan strategic fund on

or before April 1, 2007.

(viii) All of the following:

     (A) Is located in a city with a population of more than 40,000

and less than 44,000 and is located in a county with a population

of more than 81,000 and less than 87,000.

     (B) Contains only all or a portion of an industrial site

composed of 1 or more adjacent parcels totaling 100 or more acres.

     (C) Is approved by the board of the Michigan strategic fund on

or before April 1, 2008.

     Sec. 8d. (1) The board of the Michigan strategic fund

described in section 4 of the Michigan strategic fund act, 1984 PA

270, MCL 125.2004, may designate not more than 25 tool and die

renaissance recovery zones within this state in 1 or more cities,

villages, or townships if that city, village, or township or

combination of cities, villages, or townships consents to the

creation of a recovery zone within their boundaries. A recovery

zone shall have a duration of renaissance zone status for a period

of not less than 5 years and not more than 15 years as determined

by the board of the Michigan strategic fund. If the Michigan

strategic fund determines that the duration of renaissance zone

status for a recovery zone is less than 15 years, then the Michigan

strategic fund, with the consent of the city, village, or township

or combination of cities, villages, or townships in which the

qualified tool and die business is located, may extend the duration

of renaissance zone status for the recovery zone for 1 or more

periods that when combined do not exceed 15 years. Not less than 1

of the recovery zones shall consist of 1 or more qualified tool and

die businesses that have a North American industrial classification

system (NAICS) of 332997.

     (2) The board of the Michigan strategic fund may designate a

recovery zone within this state if the recovery zone consists of

not less than 4 and not more than 20 qualified tool and die

businesses at the time of designation. If the board of the Michigan

strategic fund designated 1 or more recovery zones that contain

less than 20 qualified tool and die businesses before December 19,

2005, the board of the Michigan strategic fund may add additional

qualified tool and die businesses to that recovery zone subject to

the limitations contained in this subsection. A recovery zone shall

consist of only qualified tool and die business property. The board

of the Michigan strategic fund may combine existing recovery zones

that are comprised solely of tool and die businesses that are

parties to the same qualified collaborative agreement. Where 2 or

more recovery zones have been combined, the board of the Michigan

strategic fund may continue to designate additional recovery zones,

provided that no more than 25 tool and die recovery zones exist at

1 time.

     (3) The board of the Michigan strategic fund may revoke the

designation of all or a portion of a recovery zone with respect to

1 or more qualified tool and die businesses if those qualified tool

and die businesses fail or cease to participate in or comply with a

qualified collaborative agreement. A qualified tool and die

business may enter into another qualified collaborative agreement

once it is designated part of a recovery zone.

     (4) One or more qualified tool and die businesses subject to a

qualified collaborative agreement may merge into another group of

qualified tool and die businesses subject to a different qualified

collaborative agreement upon application to and approval by the

Michigan strategic fund.

     (5) A qualified tool and die business in a recovery zone may

have a different period of renaissance zone status than other

qualified tool and die businesses in the same recovery zone.

     (6) The board of the Michigan strategic fund may modify an

existing recovery zone to add 1 or more qualified tool and die

businesses with the consent of all other qualified tool and die

businesses that are participating in the recovery zone.

     (7) The board of the Michigan strategic fund may modify an

existing recovery zone to add additional property under the same

terms and conditions as the existing recovery zone if all of the

following are met:

     (a) The additional real property is contiguous to existing

qualified tool and die business property and will become qualified

tool and die business property once it is brought into operation as

determined by the board of the Michigan strategic fund.

     (b) The city, village, or township in which the qualified tool

and die business is located consents to the modification.

(8) (7) As used in this section:

     (a) "Qualified collaborative agreement" means an agreement

that demonstrates synergistic opportunities, including, but not

limited to, all of the following:

     (i) Sales and marketing efforts.

     (ii) Development of standardized processes.

     (iii) Development of tooling standards.

     (iv) Standardized project management methods.

     (v) Improved ability for specialized or small niche shops to

develop expertise and compete successfully on larger programs.

     (b) "Qualified tool and die business" means a business entity

that meets all of the following:

     (i) Has a North American industrial classification system

(NAICS) of 332997, 333511, 333512, 333513, 333514, or 333515; or

has a North American industrial classification system (NAICS) of

337215 and operates a facility within an existing renaissance zone,

which facility is adjacent to real property not located in a

renaissance zone and is located within 1/4 mile of a Michigan

technical education center.

     (ii) Has entered into a qualified collaboration agreement as

approved by the Michigan strategic fund consisting of not fewer

than 4 or more than 20 other business entities at the time of

designation that have a North American industrial classification

system (NAICS) of 332997, 333511, 333512, 333513, 333514, or

333515.

     (iii) Has fewer than 75 full-time employees.

     (c) "Qualified tool and die business property" means 1 or more

of the following:

     (i) Property owned by 1 or more qualified tool and die

businesses and used by those qualified tool and die businesses

primarily for tool and die business operations. Qualified tool and

die business property is used primarily for tool and die business

operations if the qualified tool and die businesses that own the

qualified tool and die business property generate 75% or more of

the qualified tool and die businesses' gross revenue from tool and

die operations that take place on the qualified tool and die

business property at the time of designation.

     (ii) Property leased by 1 or more qualified tool and die

business for which the qualified tool and die business is liable

for ad valorem property taxes and which is used by those qualified

tool and die businesses primarily for tool and die business

operations. Qualified tool and die business property is used

primarily for tool and die business operations if the qualified

tool and die businesses that lease the qualified tool and die

business property generate 75% or more of the qualified tool and

die businesses' gross revenue from tool and die operations that

take place on the qualified tool and die business property at the

time of designation. The qualified tool and die business shall

furnish proof of its ad valorem property tax liability to the

department of treasury.

     Sec. 8e. (1) The board, upon recommendation of the board of

the Michigan strategic fund defined in section 4 of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2004, and upon

recommendation of the commission of agriculture if the renewable

energy facility uses agricultural crops or residues, or processed

products from agricultural crops as its primary raw material

source, may designate not more than 10 additional renaissance zones

for renewable energy facilities within this state in 1 or more

cities, villages, or townships if that city, village, or township

or combination of cities, villages, or townships consents to the

creation of a renaissance zone for a renewable energy facility

within their boundaries.

     (2) Each renaissance zone designated for a renewable energy

facility under this section shall be 1 continuous distinct

geographic area.

     (3) The board may revoke the designation of all or a portion

of a renaissance zone for a renewable energy facility if the board

determines that the renewable energy facility does 1 or more of the

following in a renaissance zone designated under this section:

     (a) Fails to commence operation.

     (b) Ceases operation.

     (c) Fails to commence construction or renovation within 1 year

from the date the renaissance zone for the renewable energy

facility is designated.

     (4) When designating a renaissance zone for a renewable energy

facility, the board shall consider all of the following:

     (a) The economic impact on local suppliers who supply raw

materials, goods, and services to the renewable energy facility.

     (b) The creation of jobs relative to the employment base of

the community rather than the static number of jobs created.

     (c) The viability of the project.

     (d) The economic impact on the community in which the

renewable energy facility is located.

     (e) All other things being equal, giving preference to a

business entity already located in this state.

     (f) Whether the renewable energy facility can be located in an

existing renaissance zone designated under section 8 or 8a.

     (5) Beginning on the effective date of the amendatory act that

added this subsection July 7, 2006, the board shall require a

development agreement between the Michigan strategic fund and the

renewable energy facility.

     (6) Until the maximum number of additional renaissance zones

for renewable energy facilities described in subsection (1) is met,

if the board designates a renaissance zone under this section,

section 8c, or section 8f for a facility that is a forest products

processing facility or an agricultural processing facility and that

also meets the definition of a renewable energy facility, then the

board shall only designate that renaissance zone as a renaissance

zone for a renewable energy facility under this section.

     (7) As used in this section, "development agreement" means a

written agreement between the Michigan strategic fund and the

renewable energy facility that includes, but is not limited to, all

of the following:

     (a) A requirement that the renewable energy facility comply

with all state and local laws.

     (b) A requirement that the renewable energy facility report

annually to the Michigan strategic fund on all of the following:

     (i) The amount of capital investment made at the facility.

     (ii) The number of individuals employed at the facility at the

beginning and end of the reporting period as well as the number of

individuals transferred to the facility from another facility owned

by the renewable energy facility.

     (iii) The percentage of raw materials purchased in this state.

     (c) Any other conditions or requirements reasonably required

by the Michigan strategic fund.

     Sec. 10. (1) An individual who is a resident of a renaissance

zone or a business that is located and conducts business activity

within a renaissance zone or a person that owns property located in

a renaissance zone is not eligible for the exemption, deduction, or

credit listed in section 9(1) or (2) for that taxable year if 1 or

more of the following apply:

     (a) The resident, business, or property owner is delinquent on

December 31 of the prior tax year under 1 or more of the following:

     (i) The single business tax act, Former 1975 PA 228 , MCL 208.1

to 208.145, or the Michigan business tax act, 2007 PA 36, MCL

208.1101 to 208.1601.

     (ii) The income tax act of 1967, 1967 PA 281, MCL 206.1 to

206.532.

     (iii) 1974 PA 198, MCL 207.551 to 207.572.

     (iv) The commercial redevelopment act, 1978 PA 255, MCL 207.651

to 207.668.

     (v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to

125.2123.

     (vi) 1953 PA 189, MCL 211.181 to 211.182.

     (vii) The technology park development act, 1984 PA 385, MCL

207.701 to 207.718.

     (viii) Part 511 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.51101 to 324.51120.

     (ix) The neighborhood enterprise zone act, 1992 PA 147, MCL

207.771 to 207.786.

     (x) The city utility users tax act, 1990 PA 100, MCL 141.1151

to 141.1177.

     (b) The resident, business, or property owner is substantially

delinquent as defined in a written policy by the qualified local

governmental unit in which the renaissance zone is located on

December 31 of the prior tax year under 1 or both of the following:

     (i) The city income tax act, 1964 PA 284, MCL 141.501 to

141.787.

     (ii) Taxes, fees, and special assessments collected under the

general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

     (c) For residential rental property in a renaissance zone, the

residential rental property is not in substantial compliance with

all applicable state and local zoning, building, and housing laws,

ordinances, or codes and, except as otherwise provided in this

subdivision, the residential rental property owner has not filed an

affidavit before December 31 in the immediately preceding tax year

with the local tax collecting unit in which the residential rental

property is located as required under section 7ff of the general

property tax act, 1893 PA 206, MCL 211.7ff. Beginning December 31,

2004, a residential rental property owner is not required to file

an affidavit if the qualified local governmental unit in which the

residential rental property is located determines that the

residential rental property is in substantial compliance with all

applicable state and local zoning, building, and housing laws,

ordinances, and codes on December 31 of the immediately preceding

tax year.

     (2) An individual who is a resident of a renaissance zone is

eligible for an exemption, deduction, or credit under section 9(1)

and (2) until the department of treasury determines that the

aggregate state and local tax revenue forgone as a result of all

exemptions, deductions, or credits granted under this act to that

individual reaches $10,000,000.00.

     (3) A casino located and conducting business activity within a

renaissance zone is not eligible for the exemption, deduction, or

credit listed in section 9(1) or (2). Real property in a

renaissance zone on which a casino is operated, personal property

of a casino located in a renaissance zone, and all property

associated or affiliated with the operation of a casino is not

eligible for the exemption, deduction, or credit listed in section

9(1) or (2). As used in this subsection, "casino" means a casino or

a parking lot, hotel, motel, or retail store owned or operated by a

casino, an affiliate, or an affiliated company, regulated by this

state pursuant to the Michigan gaming control and revenue act, the

Initiated Law of 1996 1996 IL 1, MCL 432.201 to 432.226.

     (4) For tax years beginning on or after January 1, 1997, an

individual who is a resident of a renaissance zone shall not be

denied the exemption under subsection (1) if the individual failed

to file a return on or before December 31 of the prior tax year

under subsection (1)(a)(ii) and that individual was entitled to a

refund under that act.

     (5) For tax years beginning on or after January 1, 2006, a

business that is located and conducts business activity within a

renaissance zone shall not be denied the exemption under subsection

(1) if the business failed to file a return on or before December

31 of the prior tax year under subsection (1)(a)(i) and that

business had no tax liability under that act for the tax year for

which the return was not filed.