SENATE BILL NO. 94


   January 26, 1999, Introduced by Senator PETERS and referred to 
        the Committee on Finance.



        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 253.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 253.  (1) A QUALIFIED TAXPAYER MAY CREDIT AGAINST THE

 2    TAX IMPOSED BY THIS ACT AN AMOUNT EQUAL TO 25% OF THE CREDIT THE

 3    QUALIFIED TAXPAYER IS ALLOWED TO CLAIM AS A CREDIT UNDER SECTION

 4    32 OF THE INTERNAL REVENUE CODE FOR A TAX YEAR ON A RETURN FILED

 5    UNDER THIS ACT FOR THE SAME TAX YEAR.

 6         (2) IF THE CREDIT ALLOWED BY THIS SECTION EXCEEDS THE TAX

 7    OTHERWISE DUE FOR THE TAX YEAR, THE STATE TREASURER SHALL REFUND

 8    THE EXCESS TO THE QUALIFIED TAXPAYER WITHOUT INTEREST, EXCEPT AS

 9    PROVIDED IN SECTION 30 OF 1941 PA 122, MCL 205.30.

10         (3) AS USED IN THIS SECTION, "QUALIFIED TAXPAYER" MEANS A

11    TAXPAYER WHO IS ELIGIBLE TO CLAIM A CREDIT UNDER SECTION 32 OF


   00441'99                                                 RJA
           
                                   2

 1    THE INTERNAL REVENUE CODE AND HAS A QUALIFYING CHILD AS THAT TERM

 2    IS DEFINED IN SECTION 32 OF THE INTERNAL REVENUE CODE.




















































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