| 1 | 1 | | HOUSE BILL NO. 6020 A bill to amend 1967 PA 281, entitled "Income tax act of 1967," (MCL 206.1 to 206.847) by adding sections 279 and 679. the people of the state of michigan enact: Sec. 279. (1) The department, in cooperation with the Michigan strategic fund, shall develop a Michigan community investment tax credit program in accordance with section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. Subject to the limitations provided under this section, a taxpayer that makes a qualified donation in a qualified organization after December 31, 2024 and before January 1, 2030 may claim a credit against the tax imposed by this part equal to 50% of the qualified donation made during the tax year to a qualified organization. A taxpayer shall not claim a credit under this section unless the qualified organization has issued a certificate to the taxpayer as required under section 88u(4) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. The taxpayer shall attach the certificate to the annual return filed under this part on which a credit under this section is claimed. (2) For a 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. (3) The total amount of all credits allowed to be claimed under this section and section 679 shall not exceed $25,000,000.00 per calendar year. Before June 1 of each year, the department shall provide the Michigan strategic fund with an annual report detailing the amount of credits claimed under this section and section 679 for the immediately preceding tax year and further specify how much of that total amount is attributable to each qualified organization. (4) If the amount of 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 of the taxpayer for the tax year must not be refunded but may be carried forward to offset tax liability under this part in subsequent tax years for a period not to exceed 5 tax years or until used up, whichever occurs first. (5) As used in this section: (a) "Michigan strategic fund" means the Michigan strategic fund created in section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005. (b) "Qualified donation" and "qualified organization" mean those terms as defined under section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. Sec. 679. (1) The department, in cooperation with the Michigan strategic fund, shall develop a Michigan community investment tax credit program in accordance with section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. Subject to the limitations provided under this section, a taxpayer that makes a qualified donation in a qualified organization after December 31, 2024 and before January 1, 2030 may claim a credit against the tax imposed by this part equal to 50% of the qualified donation made during the tax year to a qualified organization. A taxpayer shall not claim a credit under this section unless the qualified organization has issued a certificate to the taxpayer as required under section 88u(4) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. The taxpayer shall attach the certificate to the annual return filed under this part on which a credit under this section is claimed. (2) The total amount of all credits allowed to be claimed under this section and section 279 shall not exceed $25,000,000.00 per calendar year. Before June 1 of each year, the department shall provide the Michigan strategic fund with an annual report detailing the amount of credits claimed under this section and section 279 for the immediately preceding tax year and further specify how much of that total amount is attributable to each qualified organization. (3) If the amount of 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 of the taxpayer for the tax year must not be refunded but may be carried forward to offset tax liability under this part in subsequent tax years for a period not to exceed 5 tax years or until used up, whichever occurs first. (4) As used in this section: (a) "Michigan strategic fund" means the Michigan strategic fund created in section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005. (b) "Qualified donation" and "qualified organization" mean those terms as defined under section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 6021 (request no. 03407'23 *) of the 102nd Legislature is enacted into law. |
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| 27 | 27 | | HOUSE BILL NO. 6020 |
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| 31 | 31 | | A bill to amend 1967 PA 281, entitled |
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| 33 | 33 | | "Income tax act of 1967," |
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| 35 | 35 | | (MCL 206.1 to 206.847) by adding sections 279 and 679. |
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| 36 | 36 | | |
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| 37 | 37 | | the people of the state of michigan enact: |
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| 38 | 38 | | |
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| 39 | 39 | | Sec. 279. (1) The department, in cooperation with the Michigan strategic fund, shall develop a Michigan community investment tax credit program in accordance with section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. Subject to the limitations provided under this section, a taxpayer that makes a qualified donation in a qualified organization after December 31, 2024 and before January 1, 2030 may claim a credit against the tax imposed by this part equal to 50% of the qualified donation made during the tax year to a qualified organization. A taxpayer shall not claim a credit under this section unless the qualified organization has issued a certificate to the taxpayer as required under section 88u(4) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. The taxpayer shall attach the certificate to the annual return filed under this part on which a credit under this section is claimed. |
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| 40 | 40 | | |
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| 41 | 41 | | (2) For a 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. |
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| 42 | 42 | | |
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| 43 | 43 | | (3) The total amount of all credits allowed to be claimed under this section and section 679 shall not exceed $25,000,000.00 per calendar year. Before June 1 of each year, the department shall provide the Michigan strategic fund with an annual report detailing the amount of credits claimed under this section and section 679 for the immediately preceding tax year and further specify how much of that total amount is attributable to each qualified organization. |
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| 45 | 45 | | (4) If the amount of 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 of the taxpayer for the tax year must not be refunded but may be carried forward to offset tax liability under this part in subsequent tax years for a period not to exceed 5 tax years or until used up, whichever occurs first. |
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| 47 | 47 | | (5) As used in this section: |
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| 49 | 49 | | (a) "Michigan strategic fund" means the Michigan strategic fund created in section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005. |
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| 50 | 50 | | |
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| 51 | 51 | | (b) "Qualified donation" and "qualified organization" mean those terms as defined under section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. |
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| 52 | 52 | | |
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| 53 | 53 | | Sec. 679. (1) The department, in cooperation with the Michigan strategic fund, shall develop a Michigan community investment tax credit program in accordance with section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. Subject to the limitations provided under this section, a taxpayer that makes a qualified donation in a qualified organization after December 31, 2024 and before January 1, 2030 may claim a credit against the tax imposed by this part equal to 50% of the qualified donation made during the tax year to a qualified organization. A taxpayer shall not claim a credit under this section unless the qualified organization has issued a certificate to the taxpayer as required under section 88u(4) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. The taxpayer shall attach the certificate to the annual return filed under this part on which a credit under this section is claimed. |
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| 54 | 54 | | |
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| 55 | 55 | | (2) The total amount of all credits allowed to be claimed under this section and section 279 shall not exceed $25,000,000.00 per calendar year. Before June 1 of each year, the department shall provide the Michigan strategic fund with an annual report detailing the amount of credits claimed under this section and section 279 for the immediately preceding tax year and further specify how much of that total amount is attributable to each qualified organization. |
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| 56 | 56 | | |
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| 57 | 57 | | (3) If the amount of 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 of the taxpayer for the tax year must not be refunded but may be carried forward to offset tax liability under this part in subsequent tax years for a period not to exceed 5 tax years or until used up, whichever occurs first. |
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| 59 | 59 | | (4) As used in this section: |
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| 61 | 61 | | (a) "Michigan strategic fund" means the Michigan strategic fund created in section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005. |
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| 62 | 62 | | |
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| 63 | 63 | | (b) "Qualified donation" and "qualified organization" mean those terms as defined under section 88u of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088u. |
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| 64 | 64 | | |
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| 65 | 65 | | Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 6021 (request no. 03407'23 *) of the 102nd Legislature is enacted into law. |
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