HOUSE BILL No. 4083 January 28, 1999, Introduced by Rep. Law and referred to the Committee on Tax Policy. A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 273 (MCL 206.273), as added by 1988 PA 516. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 273. (1) For a tax year beginning after 1988, an indi- 2 vidualmeetingWHO MEETS the qualifications prescribed in sub- 3 section (2) may claim a refundable credit equal to the amount by 4 which the individual's expenditures for prescription drugs exceed 5 5% of THE INDIVIDUAL'S household income, but not more than 6 $600.00 per individual. An expenditure for a prescription drug 7 shall not be included in the calculation of this credit unless 8 the prescription drug is purchased directly by the individual and 9 the cost of the prescription drug is not covered by a third party 10 reimbursement plan. 00223'99 RJA 2 1 (2) An individual shall not claim the credit allowed by this 2 section unless the individual meets all of the following 3 qualifications: 4 (a) The individual is 65 years of age or older. 5 (b) The individual's household income does not exceed 150% 6 of the federal poverty income standards as defined and determined 7 annually by the United States office of management and budget and 8 as approved by the state treasurer. 9(c) The individual is not a resident in a health care or10mental health facility licensed or operated by the state. The11qualification prescribed by this subdivision does not apply to a12resident of a licensed home for the aged.13 (3) An individual claiming a credit under this section shall 14 not report the credit amount on the individual's return filed 15 under this act as an offset against the tax imposed by this act, 16 but shall claim the credit on a separate form prescribed by the 17 department. A credit claimed under this section shall not be 18 refunded unless the claim for the credit is filed with the 19 department not later than the June 1 immediately following the 20 tax year for which the credit is claimed. The department shall 21 administer the credit under this section as a refundable credit. 22 (4) The total amount of the credits refunded under this sec- 23 tion for each tax year shall not exceed $20,000,000.00 minus the 24 amount expended in that tax year for the older Michiganians phar- 25 maceutical assistance fund. The department shall reduce each 26 credit under this section by the percentage necessary to limit 27 the total credits to the maximum provided by this subsection. 00223'99 3 1 (5) As used in this section: 2 (a) "Household income" means that term as defined in section 3 508. 4 (b) "Prescription drug" means that term as defined in sec- 5 tion 17708 of the public health code,Act No. 368 of the Public6Acts of 1978, being section 333.17708 of the Michigan Compiled7Laws1978 PA 368, MCL 333.17708. In addition, prescription drug 8 includes insulin, syringes, and needles. 9 Enacting section 1. This amendatory act takes effect 10 January 1, 1999. 00223'99 Final page. RJA