SB 814 as passed the House December 10, 2003

 

 

 

 

 

 

 

 

SENATE BILL No. 814

                                                  (As amended December 10, 2003)

 

October 30, 2003, Introduced by Senators TOY, KUIPERS, BIRKHOLZ, GOSCHKA, BISHOP, SIKKEMA, HAMMERSTROM, CROPSEY, GEORGE, GILBERT, PATTERSON, BROWN, VAN WOERKOM, SANBORN, JELINEK, McMANUS, HARDIMAN, STAMAS, JOHNSON and GARCIA and referred to the Committee on Commerce and Labor.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1975 PA 228, entitled                                             

                                                                                

    "Single business tax act,"                                                  

                                                                                

    by amending section 38e (MCL 208.38e), as amended by 1999 PA                

                                                                                

    184.                                                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 38e.  (1) A taxpayer may claim a credit against the tax                

                                                                                

2   imposed by this act equal to the sum of 50% of the qualified                

                                                                                

3   expenses defined in subsection (5)(d)(i) and (ii) and 100% of the            

                                                                                

4   qualified expenses defined in subsection (5)(d)(iii) paid by the             

                                                                                

5   taxpayer in the tax year  ,  in each of the following                       

                                                                                

6   circumstances:                                                              

                                                                                

7       (a) Except for apprentices trained under subdivision (b) [or (c)], an       

                                                                                

8   amount not to exceed $2,000.00 for each apprentice trained by the           

                                                                                

9   taxpayer in the tax year.                                                   

                                                                                

10      (b) For companies that have a classification under the North                

                                                                                


     Senate Bill No. 814 as amended December 10, 2003

   

1   American industrial classification system (NAICS) of 333511,                

                                                                                

2   333512, 333513, 333514, or 333515 and for tax years that begin              

                                                                                

3   after December 31, 2003, an amount not to exceed $4,000.00 for              

                                                                                

4   each apprentice trained by the taxpayer in the tax year.                    

        [(c)  For companies that have a classification under the North American industrial classification system (NAICS) of 333511, 333512, 333513, 333514, or 333515 and for tax years that begin after December 31, 2003, an amount not to exceed $1,000.00 for each special apprentice trained by the taxpayer in the tax year.]                                                                          

5       (2) If the credit allowed under this section exceeds the tax                

                                                                                

6   liability of the taxpayer under this act for the tax year, that             

                                                                                

7   portion of the credit that exceeds the tax liability shall be               

                                                                                

8   refunded.                                                                   

                                                                                

9       (3) The credit allowed under this section shall be claimed on               

                                                                                

10  the annual return required under section 73, or for a taxpayer              

                                                                                

11  that is not required to file an annual return, the department               

                                                                                

12  shall provide that the credit under this subsection may be                  

                                                                                

13  claimed on the C-8044 form, a successor form for persons not                

                                                                                

14  required to file an annual return, or other simplified form                 

                                                                                

15  prescribed by the department.                                               

                                                                                

16      (4) For each year that this credit is in effect, the [Michigan              

                                                                                

17  department of career development  department of labor and economic growth]  

                                                                                

18  shall prepare a report containing information including, but not            

                                                                                

19  limited to, the number of companies taking advantage of the                 

                                                                                

20  apprenticeship credit, the number of apprentices participating in           

                                                                                

21  the program, the number of apprentices who complete a program the           

                                                                                

22  costs of which were the basis of a credit under this section, the           

                                                                                

23  number of apprentices that were hired by the taxpayer after the             

                                                                                

24  apprenticeship training was completed for which the taxpayer                

                                                                                

25  claimed a credit under this section for the costs of training               

                                                                                

26  that apprentice, information on the employment status of                    

27  individuals who have completed an apprenticeship to the extent              


                                                                                

1   the information is available, and the fiscal impact of the                  

                                                                                

2   apprenticeship credit.  This report shall then be transmitted to            

                                                                                

3   the house tax policy and senate finance committees and to the               

                                                                                

4   house and senate appropriations committees.  This report shall be           

                                                                                

5   due no later than the first day of March each year.                         

                                                                                

6       (5) As used in this section:                                                

                                                                                

7       (a) "Apprentice" means a person who is a resident of this                   

                                                                                

8   state, is 16 years of age or older but younger than 20 years of             

                                                                                

9   age, has not obtained a high school diploma, is enrolled in high            

                                                                                

10  school or a general education development (G.E.D.)  test                    

                                                                                

11  preparation program, and is trained by a taxpayer through a                 

                                                                                

12  program that meets all of the following criteria:                           

                                                                                

13                                                                               (i) The program is registered with the bureau of                                    

                                                                                

14  apprenticeship and training of the United States department of              

                                                                                

15  labor.                                                                      

                                                                                

16      (ii) The program is provided pursuant to an apprenticeship                   

                                                                                

17  agreement signed by the taxpayer and the apprentice.                        

                                                                                

18      (iii) The program is filed with a local workforce development                

                                                                                

19  board.                                                                      

                                                                                

20      (iv) The minimum term in hours for the program shall be not                  

                                                                                

21  less than 4,000 hours.                                                      

                                                                                

22      (b) "Enrolled" means currently enrolled or expecting to                     

                                                                                

23  enroll after a period of less than 3 months during which the                

                                                                                

24  program is not in operation and the apprentice is not enrolled.             

                                                                                

25      (c) "Local workforce development board" means a board                       

                                                                                

26  established by the chief elected official of a local unit of                

                                                                                

27  government pursuant to the job training partnership act, Public             


     Senate Bill No. 814 as amended December 10, 2003

   

1   Law 97-300, 96 Stat. 1322, that has the responsibility to ensure            

                                                                                

2   that the workforce needs of the employers in the geographic area            

                                                                                

3   governed by the local unit of government are met.                           

                                                                                

4       (d) "Qualified expenses" means all of the following expenses                

                                                                                

5   paid by the taxpayer in a tax year that begins after December 31,           

                                                                                

6   1996 for expenses used to calculate a credit under subsection               

                                                                                

7   (1)(a) and after December 31, 2003 for expenses used to calculate           

                                                                                

8   a credit under subsection (1)(b) that were not paid for with                

                                                                                

9   funds the taxpayer received or retained that the taxpayer would             

                                                                                

10  not otherwise have received or retained and that are used for               

                                                                                

11  training an apprentice:                                                     

                                                                                

12                                                                               (i) Salary and wages paid to an apprentice.                                         

                                                                                

13      (ii) Fringe benefits and other payroll expenses paid for the                 

                                                                                

14  benefit of an apprentice.                                                   

                                                                                

15      (iii) Costs of classroom instruction and related expenses                    

                                                                                

16  identified as costs for which the taxpayer is responsible under             

                                                                                

17  an apprenticeship agreement, including but not limited to                   

                                                                                

18  tuition, fees, and books for college level courses taken while              

                                                                                

19   the apprentice is enrolled in high school.

    [(e) "Special apprentice" means a person who is not an apprentice as defined by subsection (5) (a), is a resident of this state, is 16 years of age or older but younger than 25 years of age, and is trained by a taxpayer through a program that meets all of the criteria under subdivision (a) (i) to (iv).]