November 6, 2008, Introduced by Rep. Steil and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 278.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 278. (1) A taxpayer who is an individual that makes a
qualified investment in this state may claim a credit against the
tax imposed by this act equal to 75% of the total amount of the
taxpayer's qualified investments made during the tax year or
$10,000,000.00, whichever is less.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability shall not be refunded.
(3) A taxpayer who claims a credit under this section is not
prohibited from claiming a credit under any other section of this
act or under the Michigan business tax act, 2007 PA 36, MCL
208.1101 to 208.1601. However, the taxpayer shall not claim a
credit under this section or any other section of this act or the
Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601,
based on the same investments.
(4) As used in this section, "qualified investment" means 1 or
more of the following investments in a business in this state:
(a) New construction. As used in this subdivision:
(i) "New construction" means property not in existence on the
date the taxpayer made the investment and not replacement
construction. New construction includes the physical addition of
equipment or furnishings, subject to section 27(2)(a) to (o) of the
general property tax act, 1893 PA 206, MCL 211.27.
(ii) "Replacement construction" means that term as defined in
section 34d(1)(b)(v) of the general property tax act, 1893 PA 206,
MCL 211.34d.
(b) The purchase of new personal property. As used in this
subdivision, "new personal property" means personal property that
is not subject to or that is exempt from the collection of taxes
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155, on the date the taxpayer made the investment.
(c) Common or preferred stock and equity without a repurchase
requirement for at least 5 years.
(d) A right to purchase stock or equity securities.
(e) Any debenture or loan, whether or not convertible or
having stock purchase rights, which are subordinated, together with
security interests against the assets of the borrower, by their
terms to all borrowings of the borrower from other institutional
lenders, and that is for a term of not less than 3 years, and that
has no part amortized during the first 3 years.
(f) General or limited partnership interests.