HOUSE BILL No. 6472


     November 7, 2002, Introduced by Rep. Kolb 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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        2002, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

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        THIS ACT EQUAL TO THE FOLLOWING PERCENTAGES OF THE COST OF DAY

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        CARE IN THE FOLLOWING CIRCUMSTANCES:

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             (A) IF THE HOUSEHOLD INCOME OF THE FAMILY IS BELOW 250% OF

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        THE FEDERAL POVERTY GUIDELINES FOR THE FAMILY SIZE OF THE TAXPAY-

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        ER, 100%.

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             (B) IF THE HOUSEHOLD INCOME OF THE FAMILY IS AT OR ABOVE

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        250% OF THE FEDERAL POVERTY GUIDELINES BUT BELOW 350% OF THE

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        FEDERAL POVERTY GUIDELINES FOR THE FAMILY SIZE OF THE TAXPAYER,

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        75%.


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             (C) IF THE HOUSEHOLD INCOME OF THE FAMILY IS AT OR ABOVE

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        350% OF THE FEDERAL POVERTY GUIDELINES BUT BELOW 450% OF THE FED-

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        ERAL POVERTY GUIDELINES FOR THE FAMILY SIZE OF THE TAXPAYER,

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        50%.

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             (D) IF THE HOUSEHOLD INCOME OF THE FAMILY IS AT OR ABOVE

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        450% OF THE FEDERAL POVERTY GUIDELINES FOR THE FAMILY SIZE OF THE

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        TAXPAYER, 25%.

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             (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION

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        EXCEEDS THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR, THAT POR-

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        TION OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE

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        REFUNDED.

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             (3) AS USED IN THIS SECTION:

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             (A) "CHILD CARE" MEANS CARE PROVIDED IN A CHILD CARE CENTER,

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        DAY CARE CENTER, FAMILY DAY CARE HOME, OR GROUP FAMILY DAY CARE

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        HOME AS THOSE TERMS ARE DEFINED IN SECTION 1 OF 1973 PA 116, MCL

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        722.111, AND LICENSED OR REGISTERED UNDER 1973 PA 116, MCL

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        722.111 TO 722.128.

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             (B) "COST OF DAY CARE" MEANS THE COST PAID FOR CHILD CARE OR

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        ADULT DAY CARE PROVIDED TO A DEPENDENT OF THE TAXPAYER MINUS ANY

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        AMOUNT REIMBURSED TO THE TAXPAYER FROM ANY SOURCE.

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             (C) "FEDERAL POVERTY GUIDELINES" MEANS THE POVERTY GUIDE-

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        LINES UPDATED ANNUALLY IN THE FEDERAL REGISTER BY THE UNITED

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        STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER AUTHORITY OF

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        SECTION 673 OF SUBTITLE B OF TITLE VI OF THE OMNIBUS BUDGET REC-

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        ONCILIATION ACT OF 1981, PUBLIC LAW 97-35, 42 U.S.C. 9902.







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