HOUSE BILL No. 4812


     June 17, 1999, Introduced by Reps. Switalski, Thomas, Hale, Dennis, Quarles, Lemmons,
Hart, Minore, Martinez, Sanborn, O'Neil, Lockwood, Vaughn, Mans, Jacobs, Schauer, Wojno,
Hansen, Clarke, Gieleghem, Garza, Neumann, Richner, Hardman, Clark, Rivet, Pestka, Frank,
Sheltrown, Rison, Basham, Bogardus, Bovin, Brater, Price, Prusi, Kilpatrick, Tesanovich,
Daniels, Schermesser, Jamnick, Reeves, Cameron Brown, DeHart, Scott, LaForge, Allen,
Rick Johnson, Jellema, Jelinek, Godchaux, Middaugh, Pappageorge, Howell, Law, Green,
Woronchak, Stamas, Kuipers, DeWeese, Shackleton, Gilbert, Kowall, Woodward, Hager,
Voorhees, Faunce, LaSata, Garcia, Vander Roest, Bishop, Vear, Pumford, Julian, Jansen,
Bradstreet, Van Woerkom, DeVuyst, Ehardt, Richardville, DeRossett, Patterson, Bisbee and
Scranton and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 267.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 267.  (1) FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1999 TAX YEAR, AN ELIGIBLE TAXPAYER MAY CLAIM A CREDIT

 3    AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO THE TAXPAYER'S QUAL-

 4    IFIED ADOPTION EXPENSES OR $1,200.00, WHICHEVER IS LESS.

 5         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

 6    YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY THIS

 7    SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR,

 8    THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

 9    SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET TAX

10    LIABILITY IN SUBSEQUENT TAX YEARS; HOWEVER, THE CREDIT SHALL NOT

11    BE CARRIED FORWARD TO ANY TAX YEAR FOLLOWING THE FIFTH TAX YEAR


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 1    AFTER THE TAX YEAR IN WHICH THE ELIGIBLE TAXPAYER FIRST CLAIMED A

 2    CREDIT UNDER THIS ACT.

 3         (3) AS USED IN THIS SECTION:

 4         (A) "ELIGIBLE TAXPAYER" MEANS A TAXPAYER THAT CLAIMED A

 5    CREDIT UNDER SECTION 23 OF THE INTERNAL REVENUE CODE FOR THE SAME

 6    TAX YEAR THAT THE TAXPAYER IS CLAIMING A CREDIT UNDER THIS

 7    SECTION.

 8         (B) "QUALIFIED ADOPTION EXPENSES" MEANS ADOPTION EXPENSES

 9    USED BY AN ELIGIBLE TAXPAYER TO CLAIM A CREDIT AGAINST THE

10    TAXPAYER'S FEDERAL TAX LIABILITY UNDER SECTION 23 OF THE INTERNAL

11    REVENUE CODE FOR THE SAME TAX YEAR THAT THE TAXPAYER IS CLAIMING

12    A CREDIT UNDER THIS SECTION.
































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