HOUSE BILL No. 5944


     April 23, 2002, Introduced by Rep. Hart and referred to the Committee on Tax Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 39e.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC. 39E.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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        2001, A TAXPAYER THAT VOLUNTARILY STORES GOODS, WARES, OR MER-

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        CHANDISE DONATED TO AN ORGANIZATION DESCRIBED IN SECTION

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        501(c)(3) OF THE INTERNAL REVENUE CODE THAT PRIMARILY SERVES A

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        POPULATION WITH A HOUSEHOLD INCOME AT OR BELOW 200% OF THE POV-

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        ERTY INCOME LEVEL ESTABLISHED UNDER THE FEDERAL POVERTY GUIDE-

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        LINES PUBLISHED AND UPDATED ANNUALLY IN THE FEDERAL REGISTER OR

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        USES ITS BUSINESS TRUCK, TRUCK TRACTOR, OR SEMITRAILER TO CARRY,

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        TRANSPORT, AND DISTRIBUTE THOSE GOODS, WARES, OR MERCHANDISE TO

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        THE ORGANIZATION MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY




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        THIS ACT EQUAL TO THE VALUE OF THE SERVICES PROVIDED BY THE

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        TAXPAYER TO STORE, CARRY, TRANSPORT, OR DISTRIBUTE THESE GOODS.

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

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        YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED UNDER THIS

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        SECTION EXCEED THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX

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        YEAR, THE EXCESS SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD

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        AS AN OFFSET TO THE TAX LIABILITY IN SUBSEQUENT TAX YEARS FOR 10

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        TAX YEARS OR UNTIL THE EXCESS CREDIT IS USED UP, WHICHEVER OCCURS

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        FIRST.

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             (3) AS USED IN THIS SECTION, "VALUE OF THE SERVICES" MEANS

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        THE AMOUNT THAT WOULD HAVE BEEN CHARGED TO ANY OTHER CUSTOMER OR

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        ORGANIZATION FOR THE SAME SERVICE AS THE TAXPAYER CHOSE TO PRO-

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        VIDE VOLUNTARILY FOR THE 501(c)(3) ORGANIZATION DESCRIBED IN SUB-

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        SECTION (1).





























   05458'01          Final page.                            KAO