MI HB4674

Qualified taxpayers designated as anchor companies may claim a credit against business taxes equal to up to 100% of payroll for qualified new jobs created by suppliers and customers, multiplied by the tax rate, for up to 5 years as determined by the Michigan Economic Growth Authority.

Credits exceeding tax liability may be refunded or carried forward to offset taxes in subsequent years for up to 10 years, with a maximum of 5 new anchor companies and 5 new credits designated annually.

Anchor companies must be designated within 5 years to seek certification for qualified suppliers and customers, who must create more than 10 qualified new jobs and make investments of at least $1,000,000.

The Michigan Economic Growth Authority must disclose by July 1 annually to legislative leadership the names and addresses of qualified customers whose sales are excluded from sales factor calculations.

Taxpayers failing to meet credit requirements may have credits reduced, terminated, or previously claimed amounts added back to tax liability, effective retroactively for tax years beginning after December 31, 2008.