HOUSE BILL NO. 5102 A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.847) by adding sections 277b and 677b. the people of the state of michigan enact: Sec. 277b. (1) The Michigan strategic fund is authorized to provide an additional tax credit under this section to support research and development projects that collaborate with research universities in this state. (2) Subject to the limitations under this section, for tax years beginning on and after January 1, 2024, a qualified taxpayer that has a demonstrated plan to collaborate with a research university in this state may claim an additional credit against the tax imposed under this part equal to 5% of the qualified taxpayer's research and development expenses that are in excess of the base amount as certified by the Michigan strategic fund under section 277 or 277a, whichever is applicable. For a credit certified under section 277, the additional credit allowed under this section must not be claimed for more than 5 tax years and must not exceed $1,000,000.00 over the 5 tax years under the same written agreement. For a credit certified under section 277a, the additional credit allowed under this section must not be claimed for more than 7 tax years and must not exceed $1,000,000.00 over the 7 tax years under the same written agreement. (3) For a qualified taxpayer who is a member of a flow-through entity that qualifies for the credit under this section, that taxpayer may claim a credit against the member's tax liability under this part based on the member's distributive share of business income reported from that flow-through entity or an alternative method approved by the department. (4) A qualified taxpayer shall not claim the additional credit under this section unless the Michigan strategic fund has issued a certificate to the qualified taxpayer. The qualified taxpayer shall attach the certificate to the annual return filed under this part on which an additional credit under this section is claimed. The certificate required by this subsection shall state all of the following: (a) The taxpayer is a qualified taxpayer. (b) The amount of the additional credit under this section for the qualified taxpayer for the designated tax year. (c) The taxpayer's federal employer identification number or the Michigan department of treasury number assigned to the taxpayer. (5) The credit allowed under this section must be claimed after all allowable nonrefundable credits under this part. For a qualified taxpayer with a certificated credit under section 277, if the amount of the additional 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 of the taxpayer for the tax year must not be refunded, but may be carried forward to offset tax liability in subsequent tax years for 5 years or until used up, whichever occurs first. Amounts carried forward do not affect the maximum amount of credits that may be claimed in subsequent tax years. For a qualified taxpayer with a certificated credit under section 277a, if the amount of the additional 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 of the taxpayer for the tax year must be refunded. (6) As used in this section: (a) "Base amount", "research and development expenses", and "written agreement" mean those terms as defined in section 90u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090u. (b) "Certificated credit" means a credit for which a taxpayer has entered into an agreement with the Michigan strategic fund under section 277 or 277a. (c) "Michigan strategic fund" means the Michigan strategic fund created under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094. (d) "Qualified taxpayer" means a taxpayer with a certificated credit. Sec. 677b. (1) The Michigan strategic fund is authorized to provide an additional tax credit under this section to support research and development projects that collaborate with research universities in this state. (2) Subject to the limitations under this section, for tax years beginning on and after January 1, 2024, a qualified taxpayer that has a demonstrated plan to collaborate with a research university in this state may claim an additional credit against the tax imposed under this part equal to 5% of the qualified taxpayer's research and development expenses that are in excess of the base amount as certified by the Michigan strategic fund under section 677 or 677a, whichever is applicable. For a credit certified under section 677, the additional credit allowed under this section must not be claimed for more than 5 tax years and must not exceed $1,000,000.00 over the 5 tax years under the same written agreement. For a credit certified under section 677a, the additional credit allowed under this section must not be claimed for more than 7 tax years and must not exceed $1,000,000.00 over the 7 tax years under the same written agreement. (3) A qualified taxpayer shall not claim the additional credit under this section unless the Michigan strategic fund has issued a certificate to the qualified taxpayer. The qualified taxpayer shall attach the certificate to the annual return filed under this part on which an additional credit under this section is claimed. The certificate required by this subsection shall state all of the following: (a) The taxpayer is a qualified taxpayer. (b) The amount of the additional credit under this section for the qualified taxpayer for the designated tax year. (c) The taxpayer's federal employer identification number or the Michigan department of treasury number assigned to the taxpayer. (4) The credit allowed under this section must be claimed after all allowable nonrefundable credits under this part. For a qualified taxpayer with a certificated credit under section 677, if the amount of the additional 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 of the taxpayer for the tax year must not be refunded, but may be carried forward to offset tax liability in subsequent tax years for 5 years or until used up, whichever occurs first. Amounts carried forward do not affect the maximum amount of credits that may be claimed in subsequent tax years. For a qualified taxpayer with a certificated credit under section 677a, if the amount of the additional 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 of the taxpayer for the tax year must be refunded. (5) As used in this section: (a) "Base amount", "research and development expenses", and "written agreement" mean those terms as defined in section 90u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090u. (b) "Certificated credit" means a credit for which a taxpayer has entered into an agreement with the Michigan strategic fund under section 677 or 677a. (c) "Michigan strategic fund" means the Michigan strategic fund created under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094. (d) "Qualified taxpayer" means a taxpayer with a certificated credit. Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law: (a) Senate Bill No.____ or House Bill No. 5100 (request no. 03343'23). (b) Senate Bill No.____ or House Bill No. 5101 (request no. 03631'23). (c) Senate Bill No.____ or House Bill No. 5099 (request no. 04141'23).
HOUSE BILL NO. 5102
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding sections 277b and 677b.
the people of the state of michigan enact:
Sec. 277b. (1) The Michigan strategic fund is authorized to provide an additional tax credit under this section to support research and development projects that collaborate with research universities in this state.
(2) Subject to the limitations under this section, for tax years beginning on and after January 1, 2024, a qualified taxpayer that has a demonstrated plan to collaborate with a research university in this state may claim an additional credit against the tax imposed under this part equal to 5% of the qualified taxpayer's research and development expenses that are in excess of the base amount as certified by the Michigan strategic fund under section 277 or 277a, whichever is applicable. For a credit certified under section 277, the additional credit allowed under this section must not be claimed for more than 5 tax years and must not exceed $1,000,000.00 over the 5 tax years under the same written agreement. For a credit certified under section 277a, the additional credit allowed under this section must not be claimed for more than 7 tax years and must not exceed $1,000,000.00 over the 7 tax years under the same written agreement.
(3) For a qualified taxpayer who is a member of a flow-through entity that qualifies for the credit under this section, that taxpayer may claim a credit against the member's tax liability under this part based on the member's distributive share of business income reported from that flow-through entity or an alternative method approved by the department.
(4) A qualified taxpayer shall not claim the additional credit under this section unless the Michigan strategic fund has issued a certificate to the qualified taxpayer. The qualified taxpayer shall attach the certificate to the annual return filed under this part on which an additional credit under this section is claimed. The certificate required by this subsection shall state all of the following:
(a) The taxpayer is a qualified taxpayer.
(b) The amount of the additional credit under this section for the qualified taxpayer for the designated tax year.
(c) The taxpayer's federal employer identification number or the Michigan department of treasury number assigned to the taxpayer.
(5) The credit allowed under this section must be claimed after all allowable nonrefundable credits under this part. For a qualified taxpayer with a certificated credit under section 277, if the amount of the additional 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 of the taxpayer for the tax year must not be refunded, but may be carried forward to offset tax liability in subsequent tax years for 5 years or until used up, whichever occurs first. Amounts carried forward do not affect the maximum amount of credits that may be claimed in subsequent tax years. For a qualified taxpayer with a certificated credit under section 277a, if the amount of the additional 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 of the taxpayer for the tax year must be refunded.
(6) As used in this section:
(a) "Base amount", "research and development expenses", and "written agreement" mean those terms as defined in section 90u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090u.
(b) "Certificated credit" means a credit for which a taxpayer has entered into an agreement with the Michigan strategic fund under section 277 or 277a.
(c) "Michigan strategic fund" means the Michigan strategic fund created under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
(d) "Qualified taxpayer" means a taxpayer with a certificated credit.
Sec. 677b. (1) The Michigan strategic fund is authorized to provide an additional tax credit under this section to support research and development projects that collaborate with research universities in this state.
(2) Subject to the limitations under this section, for tax years beginning on and after January 1, 2024, a qualified taxpayer that has a demonstrated plan to collaborate with a research university in this state may claim an additional credit against the tax imposed under this part equal to 5% of the qualified taxpayer's research and development expenses that are in excess of the base amount as certified by the Michigan strategic fund under section 677 or 677a, whichever is applicable. For a credit certified under section 677, the additional credit allowed under this section must not be claimed for more than 5 tax years and must not exceed $1,000,000.00 over the 5 tax years under the same written agreement. For a credit certified under section 677a, the additional credit allowed under this section must not be claimed for more than 7 tax years and must not exceed $1,000,000.00 over the 7 tax years under the same written agreement.
(3) A qualified taxpayer shall not claim the additional credit under this section unless the Michigan strategic fund has issued a certificate to the qualified taxpayer. The qualified taxpayer shall attach the certificate to the annual return filed under this part on which an additional credit under this section is claimed. The certificate required by this subsection shall state all of the following:
(a) The taxpayer is a qualified taxpayer.
(b) The amount of the additional credit under this section for the qualified taxpayer for the designated tax year.
(c) The taxpayer's federal employer identification number or the Michigan department of treasury number assigned to the taxpayer.
(4) The credit allowed under this section must be claimed after all allowable nonrefundable credits under this part. For a qualified taxpayer with a certificated credit under section 677, if the amount of the additional 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 of the taxpayer for the tax year must not be refunded, but may be carried forward to offset tax liability in subsequent tax years for 5 years or until used up, whichever occurs first. Amounts carried forward do not affect the maximum amount of credits that may be claimed in subsequent tax years. For a qualified taxpayer with a certificated credit under section 677a, if the amount of the additional 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 of the taxpayer for the tax year must be refunded.
(5) As used in this section:
(a) "Base amount", "research and development expenses", and "written agreement" mean those terms as defined in section 90u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090u.
(b) "Certificated credit" means a credit for which a taxpayer has entered into an agreement with the Michigan strategic fund under section 677 or 677a.
(c) "Michigan strategic fund" means the Michigan strategic fund created under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
(d) "Qualified taxpayer" means a taxpayer with a certificated credit.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No.____ or House Bill No. 5100 (request no. 03343'23).
(b) Senate Bill No.____ or House Bill No. 5101 (request no. 03631'23).
(c) Senate Bill No.____ or House Bill No. 5099 (request no. 04141'23).