SENATE BILL No. 12

January 10, 2001, 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) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

2 2000, A QUALIFIED TAXPAYER MAY CREDIT AGAINST THE TAX IMPOSED BY

3 THIS ACT AN AMOUNT EQUAL TO 25% OF THE CREDIT THE QUALIFIED TAX-

4 PAYER IS ALLOWED TO CLAIM AS A CREDIT UNDER SECTION 32 OF THE

5 INTERNAL REVENUE CODE FOR A TAX YEAR ON A RETURN FILED UNDER THIS

6 ACT FOR THE SAME TAX YEAR.

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

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

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

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

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

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

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

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

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