HOUSE BILL No. 4499


     March 20, 2001, Introduced by Reps. DeWeese, Schauer, Bernero, Woodward, Godchaux, Van Woerkom, Hart and DeVuyst
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 269.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 269.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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      2000, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

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      THIS ACT EQUAL TO 10% OF THE AMOUNT OF THE EARNED INCOME CREDIT

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      THAT THE TAXPAYER WAS ELIGIBLE TO CLAIM FOR THE TAX YEAR UNDER

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      SECTION 32 OF THE INTERNAL REVENUE CODE.

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           (2) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

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

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      CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.








   02380'01          Final page.                            RJA