October 16, 2007, Introduced by Reps. Proos, Johnson, Virgil Smith, Acciavatti, Pavlov, Moss, Marleau, Palsrok and Huizenga and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 451.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 451. (1) For the 2008 tax year, a taxpayer may claim a
credit against the tax imposed by this act equal to 50% of the
total amount invested in a program approved by the Michigan state
housing development authority that provides neighborhood
assistance, job training or education for individuals who are not
employed by the taxpayer, or community services or crime prevention
in an eligible distressed area or contributed by the taxpayer to a
neighborhood organization that engages in the activities of
providing neighborhood assistance, job training or education for
individuals who are not employed by the taxpayer, or community
services or crime prevention in an eligible distressed area, or
both. The amount allowable as a credit under this section that any
1 taxpayer may claim in a single tax year shall not exceed
$25,000.00. The total amount of all credits approved under this
section for a single tax year for all taxpayers for all tax years
shall not exceed $2,500,000.00.
(2) A taxpayer shall not claim a credit under this section
unless the Michigan state housing development authority has issued
a certificate to the taxpayer. The taxpayer shall attach the
certificate to the return filed under this act on which a credit
under this section is claimed. The certificate required by this
subsection shall state all of the following:
(a) The taxpayer invested in an approved program or
contributed to a neighborhood organization that provides
neighborhood assistance or participates in an approved program.
(b) The amount of the investment or contribution made for the
designated tax year.
(c) The taxpayer's federal employer identification number or
the Michigan treasury number assigned.
(3) If the credit allowed under this section exceeds the
taxpayer's tax liability for the tax year, that portion that
exceeds the tax liability for the tax year shall be refundable.
(4) As used in this section:
(a) "Community services" means any type of counseling and
advice, emergency assistance, medical care, recreational
facilities, housing facilities, or economic development assistance
to individuals, groups, or neighborhood organizations in an
eligible distressed area.
(b) "Crime prevention" means any activity which aids in the
reduction of crime in an eligible distressed area.
(c) "Education" means any type of scholastic instruction or
scholarship assistance to an individual who resides in an eligible
distressed area that enables the individual to prepare for better
life opportunities.
(d) "Eligible distressed area" means that term as defined in
section 11 of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1411.
(e) "Job training" means any type of instruction provided to
an individual who resides in an eligible distressed area that
enables the individual to acquire vocational skills so that the
individual can become employable or be able to seek a higher grade
of employment.
(f) "Michigan state housing development authority" means the
authority created in section 21 of the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1421.
(g) "Neighborhood assistance" means either of the following:
(i) Furnishing financial assistance, labor, material, and
technical advice to aid in the physical or economic improvement of
any part or all of an eligible distressed area.
(ii) Furnishing technical advice to promote higher employment
in any neighborhood in this state.
(h) "Neighborhood organization" means any organization that is
exempt under section 501 of the internal revenue code and that
performs community services in an eligible distressed area.
Enacting section 1. This amendatory act takes effect January
1, 2008.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5313(request no.
03642'07).
(b) Senate Bill No.____ or House Bill No. 5311(request no.
03713'07 *).