Bill Text: MI SB0432 | 2019-2020 | 100th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Economic development: Michigan strategic fund; tax exemption for entities receiving aid from the Michigan strategic fund; clarify. Amends sec. 74 of 1984 PA 270 (MCL 125.2074).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2020-10-21 - Assigned Pa 0216'20 With Immediate Effect [SB0432 Detail]

Download: Michigan-2019-SB0432-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 432

 

 

August 20, 2019, Introduced by Senator HORN and referred to the Committee on Economic and Small Business Development.

 

 

 

     A bill to amend 1984 PA 270, entitled

 

"Michigan strategic fund act,"

 

by amending section 74 (MCL 125.2074), as amended by 2006 PA 616.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 74. (1) The fund may utilize the money held in the

 

research center fund to provide financial aid to nonprofit research

 

and development enterprises that perform or cause to be performed,

 

or both, research and development in present and emerging

 

technology and in the application of that technology to business

 

and industry.

 

     (2) The present or emerging technologies that are provided

 

financial aid should serve as a foundation for future job growth or

 

retention in this state, encourage economic stability or

 

diversification in this state, and establish this state as a center

 


of excellence in high technology.

 

     (3) Financial aid under this act may be provided for the

 

purposes of designing and constructing new facilities, designing

 

and rehabilitating existing facilities, acquiring an interest in

 

real or personal property, providing working capital, which may

 

include salaries, rent, supplies, inventory, accounts receivable,

 

mortgage payments, legal costs, utility costs, telephone, travel,

 

and other incidental costs normally classified as working capital

 

according to standard accounting principles. Working capital

 

financing grants provided by the fund to a particular research and

 

development enterprise shall not be granted for a period exceeding

 

10 years calculated from the effective date of the first grant to

 

the expiration date of the last grant.

 

     (4) Financial aid provided by the fund may be on those terms

 

and conditions as the fund, in its sole discretion, shall determine

 

to be reasonable, appropriate, and consistent with the purposes and

 

objectives of the fund and this act.

 

     (5) The minimum financial aid grant under this act shall be

 

$2,500,000.00 to be paid over the period of time as the fund shall

 

specify in the grant unless this restriction is waived by a 2/3

 

vote of the members of the board.

 

     (6) Personal property that is leased, or owned, and or used,

 

or that portion of real property that is leased, subleased, or

 

owned, and occupied by a nonprofit research and development

 

enterprise that receives or has received financial benefit or

 

support under this act, former 1982 PA 70, or section 117 of 2000

 

PA 291 in the amount of $1,000,000.00 or more or that has received


financial benefit or support in the amount of $1,000,000.00 or more

 

from an organization with tax-exempt status under section 501(c)(3)

 

of the internal revenue code, 26 USC 501, that received financial

 

benefit or support directly or indirectly under this act or section

 

117 of 2000 PA 291 is exempt from taxes collected under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157, 211.155, while

 

the property is leased, subleased, owned, used, or occupied by that

 

nonprofit research and development enterprise solely for the

 

purpose of performing, or coordinating, or supporting research and

 

development in present and emerging technology and of the

 

application of that technology to business and industry and

 

provided that the research and development enterprise retains its

 

tax-exempt status under section 501(c)(3) of the internal revenue

 

code, 26 USC 501.

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