HOUSE BILL No. 4852


     September 23, 1999, Introduced by Reps. Woronchak, DeRossett, Bisbee, Faunce, Julian,
Sanborn, Rivet, Toy and Gilbert 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 THE AMOUNT UNDER SECTION 268, WHICH-

 5    EVER IS LESS.

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

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

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

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

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

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


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

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

 3    CREDIT UNDER THIS ACT.

 4         (3) AS USED IN THIS SECTION:

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

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

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

 8    SECTION.

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

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

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

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

13    A CREDIT UNDER THIS SECTION.

14         Enacting section 1.  This amendatory act does not take

15    effect unless House Bill No. 4812 of the 90th Legislature is

16    enacted into law.

























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