November 7, 2007, Introduced by Reps. Bieda, Condino and Wenke 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) An eligible taxpayer may claim a credit against
the tax imposed by this act equal to the eligible taxpayer's tax
liability for the tax year after claiming any other credits allowed
under this act multiplied by a fraction, the numerator of which is
the total activity of the private equity fund manager conducted in
this state during the tax year and the denominator of which is the
total activity of the private equity fund manager conducted
everywhere during the tax year.
(2) For purposes of this section, the location of the activity
of the private equity fund manager is based on the location of the
office from which the fund manager conducts management activity for
the eligible taxpayer.
(3) As used in this section:
(a) "Accredited investor" means that term as defined under
section 77b of the internal revenue code.
(b) "Eligible taxpayer" means a taxpayer that is a private
equity fund which serves as a conduit for the investment of private
securities not listed on a public exchange by accredited investors
or qualified purchasers.
(c) "Private equity fund manager" means the person or persons
responsible for the management of the investments of the eligible
taxpayer.
(d) "Qualified purchaser" means that term as defined under
section 80a-2 of the internal revenue code.
Enacting section 1. This amendatory act takes effect January
1, 2008.