April 14, 2005, Introduced by Senators PATTERSON, GILBERT, HARDIMAN, SANBORN, GARCIA, OLSHOVE, GOSCHKA and BIRKHOLZ and referred to the Committee on Commerce and Labor.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding section 35d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35d. (1) For tax years that begin after December 31,
2005, an eligible taxpayer that pays eligible expenses for a
qualified employee may claim a credit against the tax imposed by
this act equal to 10% of the first $10,000.00 of eligible expenses
paid in the tax year for each qualified employee for courses that
will lead to a postsecondary degree or that are taken to acquire or
improve the taxpayer's job skills at an eligible educational
institution.
(2) For tax years that begin after December 31, 2006, the
maximum amounts of adjusted gross income under subsection (1) shall
be adjusted by the percentage increase in the United States
consumer price index for the immediately preceding calendar year.
(3) Money from any other source used to pay for eligible
expenses shall not be used to calculate the credit under this
section.
(4) Amounts deducted under any other section of this act or
the income tax act, 1967 PA 281, MCL 206.1 to 206.532, shall not be
used to calculate the credit under this section.
(5) If the amount of the credit allowed under this section
exceeds the tax liability of the eligible taxpayer for the tax
year, that portion of the credit that exceeds the tax liability
shall be refunded.
(6) As used in this section:
(a) "Eligible educational institution" means any college,
university, vocational school, or other postsecondary educational
institution that is eligible to participate in a student aid
program administered by the federal department of education.
(b) "Eligible expenses" means expenses listed in subparagraphs
(i) and (ii) paid for courses for which the qualified employee, the
qualified employee's spouse, and any dependent of the qualified
employee for whom the qualified employee claims an exemption under
section 30(2) for the tax year in which the credit is claimed took
during the tax year and for which he or she received academic
credit and does not include expenses listed in subparagraph (iii), as
follows:
(i) Tuition.
(ii) Related expenses such as student-activity fees and
expenses for course-related books, supplies, and equipment if the
related expenses are paid directly to the eligible educational
institution as a condition for enrollment or attendance at the
institution or in the course.
(iii) Any expenses related to the following types of courses:
(A) Courses taken to meet a continuing education requirement
for a license or certificate required for the taxpayer's job.
(B) Sports, games, or hobbies.
(C) Noncredit courses.
(c) "Eligible taxpayer" means a taxpayer that has an average
of 250 or less full-time equivalent employees during the tax year
in which a credit under this section is claimed.
(d) "Modified adjusted gross income" means modified adjusted
gross income for purposes of the lifetime learning credit under
section 25A of the internal revenue code.
(e) "Qualified employee" means an individual who is an
employee of the eligible taxpayer during the tax year and who has
modified adjusted gross income of less than $51,000.00 if the
employee files a single return or less than $103,000.00 if the
employee files a joint return.
(f) "United States consumer price index" means the United
States consumer price index for all urban consumers as defined and
reported by the United States department of labor, bureau of labor
statistics, and as certified by the state treasurer.