SENATE BILL NO. 576


   May 6, 1999, Introduced by Senators GAST, A. SMITH, PETERS, 
        BYRUM, MC MANUS, SCHWARZ, KOIVISTO, DE BEAUSSAERT, MILLER,
        NORTH, GOUGEON, VAUGHN, HAMMERSTROM, HOFFMAN, MURPHY, 
        DINGELL, SCHUETTE and HART 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 268.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 268.  (1) FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1999 TAX YEAR, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX

 3    IMPOSED BY THIS ACT EQUAL TO 10% OF QUALIFIED TUITION AND FEES

 4    PAID IN THE TAX YEAR TO COVER THE COST OF TEXTBOOKS USED IN A

 5    COURSE THE TUITION FOR WHICH THE TAXPAYER USED TO CALCULATE A

 6    CREDIT UNDER SECTION 267.  FOR PURPOSES OF THIS SECTION, ALL

 7    OTHER TAX CREDITS UNDER THIS ACT ARE CONSIDERED TO HAVE BEEN

 8    TAKEN BEFORE THE CREDITS ALLOWED UNDER THIS SECTION AND SECTION

 9    267.






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 1         (2) THE CREDITS ALLOWED UNDER THIS SECTION AND SECTION 267

 2    SHALL BE KNOWN AS THE HIGHER EDUCATION LEARNING PROMOTION (HELP)

 3    CREDITS.

 4         (3) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

 5    LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE

 6    CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.

 7         (4) TUITION USED TO CALCULATE A CREDIT UNDER SECTION 274

 8    SHALL NOT BE USED TO CALCULATE A CREDIT UNDER THIS SECTION.

 9         (5) AS USED IN THIS SECTION, "QUALIFIED TUITION AND FEES"

10    MEANS THAT TERM AS DEFINED IN SECTION 267.




































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