SENATE BILL No. 424

April 25, 2001, Introduced by Senators SCOTT, YOUNG, CHERRY, LELAND, MILLER,

SMITH, DINGELL and BYRUM 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 269.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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

3 THIS ACT EQUAL TO THE AMOUNT PAID IN THE TAX YEAR AS PREMIUMS FOR

4 HEALTH CARE INSURANCE FOR THE TAXPAYER AND THE TAXPAYER'S IMMEDI-

5 ATE FAMILY MEMBERS TO THE EXTENT NOT REIMBURSED TO THE TAXPAYER

6 FROM ANY OTHER SOURCE.

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

8 LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT AMOUNT THAT

9 EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.

10 (3) AS USED IN THIS SECTION:

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1 (A) "HEALTH CARE INSURANCE" MEANS ANY COST PAID BY THE

2 TAXPAYER FOR HEALTH COVERAGE UNDER A POLICY, CONTRACT,

3 CERTIFICATE, OR SELF-FUNDED PLAN.

4 (B) "IMMEDIATE FAMILY MEMBERS" MEANS THE SPOUSE, PARENTS,

5 AND CHILDREN OF THE TAXPAYER CLAIMED BY THE TAXPAYER AS DEPEN-

6 DENTS FOR FEDERAL INCOME TAX PURPOSES.

7 (C) "POLICY, CONTRACT, OR CERTIFICATE" MEANS A POLICY, CON-

8 TRACT, OR CERTIFICATE ISSUED UNDER THE INSURANCE CODE OF 1956,

9 1956 PA 218, MCL 500.100 TO 500.8302, OR A CERTIFICATE ISSUED BY

10 A NONPROFIT HEALTH CARE CORPORATION OPERATING UNDER THE NONPROFIT

11 HEALTH CARE CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1101 TO

12 550.1704.

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