Bill Text: MI SB0364 | 2009-2010 | 95th Legislature | Introduced


Bill Title: Economic development; Michigan economic growth authority; definition of high-technology activity; clarify and revise the retained jobs threshold. Amends secs. 3 & 8 of 1995 PA 24 (MCL 207.803 & 207.808).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-03-11 - Referred To Committee On Commerce And Tourism [SB0364 Detail]

Download: Michigan-2009-SB0364-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 364

 

 

March 11, 2009, Introduced by Senator ALLEN and referred to the Committee on Commerce and Tourism.

 

 

 

     A bill to amend 1995 PA 24, entitled

 

"Michigan economic growth authority act,"

 

by amending sections 3 and 8 (MCL 207.803 and 207.808), as amended

 

by 2008 PA 257.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. As used in this act:

 

     (a) "Affiliated business" means a business that is at least

 

50% owned and controlled, directly or indirectly, by an associated

 

business.

 

     (b) "Associated business" means a business that owns at least

 

50% of and controls, directly or indirectly, an authorized

 

business.

 

     (c) "Authorized business" means 1 of the following:


 

     (i) A single eligible business with a unique federal employer

 

identification number that has met the requirements of section 8

 

and with which the authority has entered into a written agreement

 

for a tax credit under section 9.

 

     (ii) A single eligible business with a unique federal employer

 

identification number that has met the requirements of section 8,

 

except as provided in this subparagraph, and with which the

 

authority has entered into a written agreement for a tax credit

 

under section 9. An eligible business is not required to create

 

qualified new jobs or maintain retained jobs if qualified new jobs

 

are created or retained jobs are maintained by an associated

 

business, subsidiary business, affiliated business, or an employee

 

leasing company or professional employer organization that has

 

entered into a contractual service agreement with the authorized

 

business in which the employee leasing company or professional

 

employer organization withholds income and social security taxes on

 

behalf of the authorized business.

 

     (d) "Authority" means the Michigan economic growth authority

 

created under section 4.

 

     (e) "Business" means proprietorship, joint venture,

 

partnership, limited liability partnership, trust, business trust,

 

syndicate, association, joint stock company, corporation,

 

cooperative, limited liability company, or any other organization.

 

     (f) "Distressed business" means a business that meets all of

 

the following as verified by the Michigan economic growth

 

authority:

 

     (i) Four years immediately preceding the application to the


 

authority under this act, the business had 150 or more full-time

 

jobs in this state.

 

     (ii) Within the immediately preceding 4 years, there has been a

 

reduction of not less than 30% of the number of full-time jobs in

 

this state during any consecutive 3-year period. The highest number

 

of full-time jobs within the consecutive 3-year period shall be

 

used in order to determine the percentage reduction of full-time

 

jobs in this subparagraph.

 

     (iii) Is not a seasonal employer as defined in section 27 of the

 

Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.27.

 

     (g) "Eligible business" means a distressed business or

 

business that proposes to maintain retained jobs after December 31,

 

1999 or to create qualified new jobs in this state after April 18,

 

1995 in manufacturing, mining, research and development, wholesale

 

and trade, film and digital media production, or office operations

 

or a business that is a qualified high-technology business or a

 

business that is a tourism attraction facility or a qualified

 

lodging facility. Except for a retail establishment that meets the

 

criteria in section 8(11), an eligible business does not include

 

retail establishments, professional sports stadiums, or that

 

portion of an eligible business used exclusively for retail sales.

 

Professional sports stadium does not include a sports stadium in

 

existence on June 6, 2000 that is not used by a professional sports

 

team on the date that an application related to that professional

 

sports stadium is filed under section 8.

 

     (h) "Facility" means a site or sites within this state in

 

which an authorized business or subsidiary business maintains


 

retained jobs or creates qualified new jobs.

 

     (i) "Film and digital media production" means the development,

 

preproduction, production, postproduction, and distribution of

 

single media or multimedia entertainment content for distribution

 

or exhibition to the general public in 2 or more states by any

 

means and media in any digital media format, film, or video tape,

 

including, but not limited to, a motion picture, a documentary, a

 

television series, a television miniseries, a television special,

 

interstitial television programming, long-form television,

 

interactive television, music videos, interactive games, video

 

games, internet programming, an internet video, a sound recording,

 

a video, digital animation, or an interactive website. Film and

 

digital media production also includes the development,

 

preproduction, production, postproduction, and distribution of a

 

trailer, pilot, video teaser, or demo created primarily to

 

stimulate the sale, marketing, promotion, or exploitation of future

 

investment in a film or digital media production. Film or digital

 

media production does not include the production of any of the

 

following:

 

     (i) A production for which records are required to be

 

maintained with respect to any performer in the production under 18

 

USC 2257.

 

     (ii) A production that includes obscene matter or an obscene

 

performance as described in 1984 PA 343, MCL 752.361 to 752.374.

 

     (iii) A production that primarily consists of televised news or

 

current events.

 

     (iv) A production that primarily consists of a live sporting


 

event.

 

     (v) A production that primarily consists of political

 

advertising.

 

     (vi) A radio program.

 

     (vii) A weather show.

 

     (viii) A financial market report.

 

     (ix) A talk show.

 

     (x) A game show.

 

     (xi) A production that primarily markets a product or service.

 

     (xii) An awards show or other gala event production.

 

     (xiii) A production with the primary purpose of fund-raising.

 

     (xiv) A production that primarily is for employee training or

 

in-house corporate advertising or other similar production.

 

     (j) "Full-time job" means a job performed by an individual for

 

35 hours or more each week and whose income and social security

 

taxes are withheld by 1 or more of the following:

 

     (i) An authorized business.

 

     (ii) An employee leasing company.

 

     (iii) A professional employer organization on behalf of the

 

authorized business.

 

     (iv) Another person as provided in section 8(1)(c).

 

     (v) A business that sells all or part of its assets to an

 

eligible business that receives a credit under section 8(1) or (5).

 

     (k) "Local governmental unit" means a county, city, village,

 

or township in this state.

 

     (l) "High-technology activity" means the manufacture, testing,

 

assembly, development, or design of 1 or more of the following:


 

     (i) Advanced computing, which is any technology used in the

 

design and development of any of the following:

 

     (A) Computer hardware and software.

 

     (B) Data communications.

 

     (C) Information technologies.

 

     (D) Film and digital media production.

 

     (ii) Advanced materials, which are materials with engineered

 

properties created through the development of specialized process

 

and synthesis technology.

 

     (iii) Biotechnology, which is any technology that uses living

 

organisms, cells, macromolecules, microorganisms, or substances

 

from living organisms to make or modify a product, improve plants

 

or animals, or develop microorganisms for useful purposes.

 

Biotechnology does not include human cloning as defined in section

 

16274 of the public health code, 1978 PA 368, MCL 333.16274, or

 

stem cell research with embryonic tissue.

 

     (iv) Electronic device technology, which is any technology that

 

involves microelectronics, semiconductors, electronic equipment,

 

and instrumentation, radio frequency, microwave, and millimeter

 

electronics, and optical and optic-electrical devices, or data and

 

digital communications and imaging devices.

 

     (v) Engineering or laboratory testing related to the

 

development of a product.

 

     (vi) Technology that assists in the assessment or prevention of

 

threats or damage to human health or the environment, including,

 

but not limited to, environmental cleanup technology, pollution

 

prevention technology, or development of alternative energy


 

sources.

 

     (vii) Medical device technology, which is any technology that

 

involves medical equipment or products other than a pharmaceutical

 

product that has therapeutic or diagnostic value and is regulated.

 

     (viii) Product research and development.

 

     (ix) Advanced vehicles technology, which is any technology that

 

involves electric vehicles, hybrid vehicles, or alternative fuel

 

vehicles, or components used in the construction of electric

 

vehicles, hybrid vehicles, or alternative fuel vehicles. For

 

purposes of this act:

 

     (A) "Electric vehicle" means a road vehicle that draws

 

propulsion energy only from an on-board source of electrical

 

energy.

 

     (B) "Hybrid vehicle" means a road vehicle that can draw

 

propulsion energy from both a consumable fuel and a rechargeable

 

energy storage system.

 

     (x) Tool and die manufacturing.

 

     (xi) Competitive edge technology as defined in section 88a of

 

the Michigan strategic fund act, 1984 PA 270, MCL 125.2088a.

 

     (xii) Digital media, including internet publishing and

 

broadcasting, video gaming, web development, and entertainment

 

technology.

 

     (xiii) Music production, including record production and

 

development, sound recording studios, and integrated high-

 

technology record production and distribution.

 

     (xiv) Film and video, including motion picture and video

 

production and distribution, postproduction services, and


 

teleproduction and production services.

 

     (m) "New capital investment" means 1 or more of the following:

 

     (i) New construction. As used in this subparagraph:

 

     (A) "New construction" means property not in existence on the

 

date the authorized business enters into a written agreement with

 

the authority 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.

 

     (B) "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.

 

     (ii) The purchase of new personal property. As used in this

 

subparagraph, "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 authorized business enters into a written

 

agreement with the authority.

 

     (n) "Qualified high-technology business" means a business or

 

facility whose primary business activity is high-technology

 

activity or a qualified high-wage activity.

 

     (o) "Qualified high-wage activity" means a business that has

 

an average wage of 300% or more of the federal minimum wage.

 

Qualified high-wage activity may also include, but is not limited

 

to, 1 or more of the following as long as they have an average wage

 

of 300% or more of the federal minimum wage:

 

     (i) Architecture and design, including architectural design,


 

graphic design, interior design, fashion design, and industrial

 

design.

 

     (ii) Advertising and marketing, including advertising and

 

marketing firms and agencies, public relations agencies, and

 

display advertising.

 

     (p) "Qualified lodging facility" means 1 or more of the

 

following:

 

     (i) Lodging facilities that constitute a portion of a tourism

 

attraction facility and represent less than 50% of the total cost

 

of the tourism attraction facility, or the lodging facilities are

 

to be located on recreational property owned or leased by the

 

municipal, state, or federal government.

 

     (ii) The lodging facilities involve the restoration or

 

rehabilitation of a structure that is listed individually in the

 

national register of historic places or are located in a national

 

register historic district and certified by this state as

 

contributing to the historic significance of the district, and the

 

rehabilitation or restoration project has been approved in advance

 

by this state.

 

     (q) "Qualified new job" means 1 of the following:

 

     (i) A full-time job created by an authorized business at a

 

facility that is in excess of the number of full-time jobs the

 

authorized business maintained in this state prior to the expansion

 

or location, as determined by the authority.

 

     (ii) For jobs created after July 1, 2000, a full-time job at a

 

facility created by an eligible business that is in excess of the

 

number of full-time jobs maintained by that eligible business in


 

this state up to 90 days before the eligible business became an

 

authorized business, as determined by the authority.

 

     (iii) For a distressed business, a full-time job at a facility

 

that is in excess of the number of full-time jobs maintained by

 

that eligible business in this state on the date the eligible

 

business became an authorized business.

 

     (r) "Retained jobs" means the number of full-time jobs at a

 

facility of an authorized business maintained in this state on a

 

specific date as that date and number of jobs is determined by the

 

authority.

 

     (s) "Rural business" means an eligible business located in a

 

county with a population of 90,000 or less.

 

     (t) "Subsidiary business" means a business that is directly or

 

indirectly controlled or at least 80% owned by an authorized

 

business.

 

     (u) "Tourism attraction facility" means a cultural or

 

historical site, a recreation or entertainment facility, an area of

 

natural phenomena or scenic beauty, or an entertainment destination

 

center as determined by the Michigan economic growth authority as

 

follows:

 

     (i) In making a determination, the Michigan economic growth

 

authority shall consider all of the following:

 

     (A) Whether the facility will actually attract tourists.

 

     (B) Whether 50% or more of the persons using the facility

 

reside outside a 100-mile radius.

 

     (C) Whether 50% or more of the gross receipts are from

 

admissions, food, or nonalcoholic drinks.


 

     (D) Whether the facility offers a unique experience.

 

     (ii) The Michigan economic growth authority shall not determine

 

any of the following as a tourism attraction facility:

 

     (A) Facilities, other than an entertainment destination

 

center, that are primarily devoted to the retail sale of goods, a

 

theme restaurant destination attraction, or a tourism attraction

 

where the attraction is a secondary and subordinate component to

 

the sale of goods.

 

     (B) Recreational facilities that do not serve as a likely

 

destination where individuals who are not residents of the state

 

would remain overnight in commercial lodging at or near the

 

facility.

 

     (v) "Written agreement" means a written agreement made

 

pursuant to section 8. A written agreement may address new jobs,

 

qualified new jobs, full-time jobs, retained jobs, or any

 

combination of new jobs, qualified new jobs, full-time jobs, or

 

retained jobs.

 

     Sec. 8. (1) After receipt of an application, the authority may

 

enter into an agreement with an eligible business for a tax credit

 

under section 9 if the authority determines that all of the

 

following are met:

 

     (a) Except as provided in subsection (5), the eligible

 

business creates 1 or more of the following as determined by the

 

authority and provided with written agreement:

 

     (i) A minimum of 50 qualified new jobs at the facility if

 

expanding in this state.

 

     (ii) A minimum of 50 qualified new jobs at the facility if


 

locating in this state.

 

     (iii) A minimum of 25 qualified new jobs at the facility if the

 

facility is located in a neighborhood enterprise zone as determined

 

under the neighborhood enterprise zone act, 1992 PA 147, MCL

 

207.771 to 207.786, is located in a renaissance zone under the

 

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

 

125.2696, or is located in a federally designated empowerment zone,

 

rural enterprise community, or enterprise community.

 

     (iv) A minimum of 5 qualified new jobs at the facility if the

 

eligible business is a qualified high-technology business.

 

     (v) A minimum of 5 qualified new jobs at the facility if the

 

eligible business is a rural business.

 

     (b) Except as provided in subsection (5), the eligible

 

business agrees to maintain 1 or more of the following for each

 

year that a credit is authorized under this act:

 

     (i) A minimum of 50 qualified new jobs at the facility if

 

expanding in this state.

 

     (ii) A minimum of 50 qualified new jobs at the facility if

 

locating in this state.

 

     (iii) A minimum of 25 qualified new jobs at the facility if the

 

facility is located in a neighborhood enterprise zone as determined

 

under the neighborhood enterprise zone act, 1992 PA 147, MCL

 

207.771 to 207.786, is located in a renaissance zone under the

 

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

 

125.2696, or is located in a federally designated empowerment zone,

 

rural enterprise community, or enterprise community.

 

     (iv) If the eligible business is a qualified high-technology


 

business, all of the following apply:

 

     (A) A minimum of 5 qualified new jobs at the facility.

 

     (B) A minimum of 25 qualified new jobs at the facility within

 

5 years after the date of the expansion or location as determined

 

by the authority and a minimum of 25 qualified new jobs at the

 

facility each year thereafter for which a credit is authorized

 

under this act.

 

     (v) If the eligible business is a rural business, all of the

 

following apply:

 

     (A) A minimum of 5 qualified new jobs at the facility.

 

     (B) A minimum of 25 qualified new jobs at the facility within

 

5 years after the date of the expansion or location as determined

 

by the authority.

 

     (c) Except as provided in subsection (5) and as otherwise

 

provided in this subdivision, in addition to the jobs specified in

 

subdivision (b), the eligible business, if already located within

 

this state, agrees to maintain a number of full-time jobs equal to

 

or greater than the number of full-time jobs it maintained in this

 

state prior to the expansion, as determined by the authority. After

 

an eligible business has entered into a written agreement as

 

provided in subsection (2), the authority may adjust the number of

 

full-time jobs required to be maintained by the authorized business

 

under this subdivision, in order to adjust for decreases in full-

 

time jobs in the authorized business in this state due to the

 

divestiture of operations, provided a single other person continues

 

to maintain those full-time jobs in this state. The authority shall

 

not approve a reduction in the number of full-time jobs to be


 

maintained unless the authority has determined that it can monitor

 

the maintenance of the full-time jobs in this state by the other

 

person, and the authorized business agrees in writing that the

 

continued maintenance of the full-time jobs in this state by the

 

other person, as determined by the authority, is a condition of

 

receiving tax credits under the written agreement. A full-time job

 

maintained by another person under this subdivision, that otherwise

 

meets the requirements of section 3(i) 3(j), shall be considered a

 

full-time job, notwithstanding the requirement that a full-time job

 

be performed by an individual employed by an authorized business,

 

or an employee leasing company or professional employer

 

organization on behalf of an authorized business.

 

     (d) Except as otherwise provided in this subdivision, the wage

 

paid for each retained job and qualified new job is equal to or

 

greater than 150% of the federal minimum wage. However, if the

 

eligible business is a qualified high-wage activity, then the wage

 

paid for each qualified new job is equal to or greater than 300% of

 

the federal minimum wage. However, beginning on the effective date

 

of the amendatory act that added this sentence August 4, 2008, the

 

authority may include the value of the health care benefit in

 

determining the wage paid for each retained job or qualified new

 

job for an eligible business under this act.

 

     (e) The plans for the expansion, retention, or location are

 

economically sound.

 

     (f) Except for an eligible business described in subsection

 

(5)(c), the eligible business has not begun construction of the

 

facility.


 

     (g) The expansion, retention, or location of the eligible

 

business will benefit the people of this state by increasing

 

opportunities for employment and by strengthening the economy of

 

this state.

 

     (h) The tax credits offered under this act are an incentive to

 

expand, retain, or locate the eligible business in Michigan and

 

address the competitive disadvantages with sites outside this

 

state.

 

     (i) A cost/benefit analysis reveals that authorizing the

 

eligible business to receive tax credits under this act will result

 

in an overall positive fiscal impact to the state.

 

     (j) If the eligible business is a qualified high-technology

 

business described in section 3(m)(i) 3(n), the eligible business

 

agrees that not less than 25% of the total operating expenses of

 

the business will be maintained for research and development for

 

the first 3 years of the written agreement.

 

     (2) If the authority determines that the requirements of

 

subsection (1), (5), (9), or (11) have been met, the authority

 

shall determine the amount and duration of tax credits to be

 

authorized under section 9, and shall enter into a written

 

agreement as provided in this section. The duration of the tax

 

credits shall not exceed 20 years or for an authorized business

 

that is a distressed business, 3 years. In determining the amount

 

and duration of tax credits authorized, the authority shall

 

consider the following factors:

 

     (a) The number of qualified new jobs to be created or retained

 

jobs to be maintained.


 

     (b) The average wage and health care benefit level of the

 

qualified new jobs or retained jobs relative to the average wage

 

and health care benefit paid by private entities in the county in

 

which the facility is located.

 

     (c) The total capital investment or new capital investment the

 

eligible business will make.

 

     (d) The cost differential to the business between expanding,

 

locating, or retaining new jobs in Michigan and a site outside of

 

Michigan.

 

     (e) The potential impact of the expansion, retention, or

 

location on the economy of Michigan.

 

     (f) The cost of the credit under section 9, the staff,

 

financial, or economic assistance provided by the local government

 

unit, or local economic development corporation or similar entity,

 

and the value of assistance otherwise provided by this state.

 

     (g) Whether the expansion, retention, or location will occur

 

in this state without the tax credits offered under this act.

 

     (h) Whether the authorized business reuses or redevelops

 

property that was previously used for an industrial or commercial

 

purpose in locating the facility.

 

     (3) A written agreement between an eligible business and the

 

authority shall include, but need not be limited to, all of the

 

following:

 

     (a) A description of the business expansion, retention, or

 

location that is the subject of the agreement.

 

     (b) Conditions upon which the authorized business designation

 

is made.


 

     (c) A statement by the eligible business that a violation of

 

the written agreement may result in the revocation of the

 

designation as an authorized business and the loss or reduction of

 

future credits under section 9.

 

     (d) A statement by the eligible business that a

 

misrepresentation in the application may result in the revocation

 

of the designation as an authorized business and the refund of

 

credits received under section 9.

 

     (e) A method for measuring full-time jobs before and after an

 

expansion, retention, or location of an authorized business in this

 

state.

 

     (f) A written certification from the eligible business

 

regarding all of the following:

 

     (i) The eligible business will follow a competitive bid process

 

for the construction, rehabilitation, development, or renovation of

 

the facility, and that this process will be open to all Michigan

 

residents and firms. The eligible business may not discriminate

 

against any contractor on the basis of its affiliation or

 

nonaffiliation with any collective bargaining organization.

 

     (ii) The eligible business will make a good faith effort to

 

employ, if qualified, Michigan residents at the facility.

 

     (iii) The eligible business will make a good faith effort to

 

employ or contract with Michigan residents and firms to construct,

 

rehabilitate, develop, or renovate the facility.

 

     (iv) The eligible business is encouraged to make a good faith

 

effort to utilize Michigan-based suppliers and vendors when

 

purchasing goods and services.


 

     (g) A condition that if the eligible business qualified under

 

subsection (5)(b)(ii) and met the subsection (1)(e) requirement by

 

filing a chapter 11 plan of reorganization, the plan must be

 

confirmed by the bankruptcy court within 6 years of the date of the

 

agreement or the agreement is rescinded.

 

     (4) Upon execution of a written agreement as provided in this

 

section, an eligible business is an authorized business.

 

     (5) Through December 31, 2007, after receipt of an

 

application, the authority may enter into a written agreement with

 

an eligible business that meets 1 or more of the following

 

criteria:

 

     (a) Is located in this state on the date of the application,

 

makes new capital investment of $250,000,000.00 in this state, and

 

maintains 500 retained jobs, as determined by the authority.

 

     (b) Meets 1 or more of the following criteria:

 

     (i) Relocates production of a product to this state after the

 

date of the application, makes capital investment of

 

$500,000,000.00 in this state, and maintains 500 retained jobs, as

 

determined by the authority.

 

     (ii) Maintains 150 100 retained jobs at a facility, maintains

 

1,000 750 or more full-time jobs in this state, and makes new

 

capital investment in this state.

 

     (iii) Is located in this state on the date of the application,

 

maintains at least 100 retained jobs at a single facility, and

 

agrees to make new capital investment at that facility equal to the

 

greater of $100,000.00 per retained job maintained at that facility

 

or $10,000,000.00 to be completed or contracted for not later than


 

December 31, 2007.

 

     (iv) Maintains 300 retained jobs at a facility; the facility is

 

at risk of being closed and if it were to close, the work would go

 

to a location outside this state, as determined by the authority;

 

new management or new ownership is proposed for the facility that

 

is committed to improve the viability of the facility, unless

 

otherwise provided in this subparagraph; and the tax credits

 

offered under this act are necessary for the facility to maintain

 

operations. The authority may not enter into a written agreement

 

under this subparagraph after December 31, 2007. Of the written

 

agreements entered into under this subparagraph, the authority may

 

enter into 3 written agreements under this subparagraph that are

 

excluded from the requirements of subsection (1)(e), (f), and (h)

 

,and (i) if the authority considers it in the public interest and

 

if the eligible business would have met the requirements of

 

subsection (1)(g) , and (h) , and (k) within the immediately

 

preceding 6 months from the signing of the written agreement for a

 

tax credit. Of the 3 written agreements described in this

 

subparagraph, the authority may also waive the requirement for new

 

management if the existing management and labor make a commitment

 

to improve the viability and productivity of the facility to better

 

meet international competition as determined by the authority.

 

     (v) Maintains 100 retained jobs at a facility; is a rural

 

business, unless otherwise provided in this subparagraph; the

 

facility is at risk of being closed and if it were to close, the

 

work would go to a location outside this state, as determined by

 

the authority; new management or new ownership is proposed for the


 

facility that is committed to improve the viability of the

 

facility; and the tax credits offered under this act are necessary

 

for the facility to maintain operations. The authority may not

 

enter into a written agreement under this subparagraph after

 

December 31, 2007. Of the written agreements entered into under

 

this subparagraph, the authority may enter into 3 written

 

agreements under this subparagraph that are excluded from the

 

requirements of subsection (1)(e), (f), and (h) if the authority

 

considers it in the public interest and if the eligible business

 

would have met the requirements of subsection (1)(g) (1)(e), (g),

 

and (h) , and (e) within the immediately preceding 6 months from

 

the signing of the written agreement for a tax credit. Of the 3

 

written agreements described in this subparagraph, the authority

 

may also waive the requirement that the business be a rural

 

business if the business is located in a county with a population

 

of 500,000 or more and 600,000 or less.

 

     (vi) Maintains 175 retained jobs and makes new capital

 

investment at a facility in a county with a population of not less

 

than 7,500 but not greater than 8,000.

 

     (vii) Is located in this state on the date of the application,

 

maintains at least 675 retained jobs at a facility, agrees to

 

create 400 new jobs, and agrees to make a new capital investment of

 

at least $45,000,000.00 to be completed or contracted for not later

 

than December 31, 2007. Of the written agreements entered into

 

under this subparagraph, the authority may enter into 1 written

 

agreement under this subparagraph that is excluded from the

 

requirements of subsection (1)(f) if the authority considers it in


 

the public interest.

 

     (viii) Is located in this state on the date of the application,

 

makes new capital investment of $250,000,000.00 or more in this

 

state, and makes that capital investment at a facility located

 

north of the 45th parallel.

 

     (c) Is a distressed business.

 

     (6) Each year, the authority shall not execute new written

 

agreements that in total provide for more than 400 yearly credits

 

over the terms of those agreements entered into that year for

 

eligible businesses that are not qualified high-technology

 

businesses, distressed businesses, rural businesses, or an eligible

 

business described in subsection (11).

 

     (7) The authority shall not execute more than 50 new written

 

agreements each year for eligible businesses that are qualified

 

high-technology businesses or rural business. Only 25 of the 50

 

written agreements for businesses that are qualified high-

 

technology businesses or rural business may be executed each year

 

for qualified rural businesses.

 

     (8) The authority shall not execute more than 20 new written

 

agreements each year for eligible businesses that are distressed

 

businesses. The authority shall not execute more than 5 of the

 

written agreements described in this subsection each year for

 

distressed businesses that had 1,000 or more full-time jobs at a

 

facility 4 years immediately preceding the application to the

 

authority under this act. The authority shall not execute more than

 

5 new written agreements each year for eligible businesses

 

described in subsection (11). The authority shall not execute more


 

than 4 new written agreements each year for eligible businesses

 

described in subsection (11) in local governmental units that have

 

a population greater than 16,000.

 

     (9) Beginning January 1, 2008, after receipt of an

 

application, the authority may enter into a written agreement with

 

an eligible business that does not meet the criteria described in

 

subsection (1), if the eligible business meets all of the

 

following:

 

     (a) Agrees to retain not fewer than 50 jobs.

 

     (b) Agrees to invest, through construction, acquisition,

 

transfer, purchase, contract, or any other method as determined by

 

the authority, at a facility equal to $50,000.00 or more per

 

retained job maintained at the facility.

 

     (c) Certifies to the authority that, without the credits under

 

this act and without the new capital investment, the facility is at

 

risk of closing and the work and jobs would be removed to a

 

location outside of this state.

 

     (d) Certifies to the authority that the management or

 

ownership is committed to improving the long-term viability of the

 

facility in meeting the national and international competition

 

facing the facility through better management techniques, best

 

practices, including state of the art lean manufacturing practices,

 

and market diversification.

 

     (e) Certifies to the authority that it will make best efforts

 

to keep jobs in Michigan when making plant location and closing

 

decisions.

 

     (f) Certifies to the authority that the workforce at the


 

facility demonstrates its commitment to improving productivity and

 

profitability at the facility through various means.

 

     (10) Beginning on the effective date of the amendatory act

 

that added this subsection April 28, 2008, if the authority enters

 

into a written agreement with an eligible business, the written

 

agreement shall include a repayment provision of all or a portion

 

of the credits received by the eligible business for a facility if

 

the eligible business moves full-time jobs outside this state

 

during the term of the written agreement and for a period of years

 

after the term of the written agreement, as determined by the

 

authority.

 

     (11) Beginning January 1, 2008, after receipt of an

 

application, the authority may enter into a written agreement with

 

an eligible business that does not meet the criteria described in

 

subsection (1), if the eligible business meets all of the

 

following:

 

     (a) Agrees to create or retain not fewer than 15 jobs.

 

     (b) Agrees to occupy property that is a historic resource as

 

that term is defined in section 435 of the Michigan business tax

 

act, 2007 PA 36, MCL 208.1435, and that is located in a downtown

 

district as defined in section 1 of 1975 PA 197, MCL 125.1651.

 

     (c) The average wage paid for each retained job and full-time

 

job is equal to or greater than 150% of the federal minimum wage.

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