HOUSE BILL No. 5247


     February 1, 2000, Introduced by Reps. Thomas, Schauer, Hale, Bogardus, Scott, Schermesser, DeHart, Jacobs, Brater, Minore,
Ehardt, Dennis and Daniels 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 267.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           SEC. 267.  (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,

 2
      FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER THE 1999 TAX YEAR,

 3
      A QUALIFIED TAXPAYER WITH A FULL-TIME OR PART-TIME MEDICAL CARE

 4
      PRACTICE MAY CREDIT $5,000.00 AGAINST THE TAX IMPOSED BY THIS ACT

 5
      FOR A MAXIMUM OF 5 CONSECUTIVE TAX YEARS.  A CREDIT CLAIMED UNDER

 6
      THIS SECTION BY A QUALIFIED TAXPAYER WITH A PART-TIME MEDICAL

 7
      CARE PRACTICE SHALL EQUAL $5,000.00 MULTIPLIED BY A FRACTION THE

 8
      NUMERATOR OF WHICH IS THE AVERAGE NUMBER OF HOURS PER WEEK OF

 9
      THAT PART-TIME MEDICAL CARE PRACTICE AND THE DENOMINATOR OF WHICH

10
      IS 40.  A FRACTION UNDER THIS SUBSECTION SHALL NOT BE GREATER

11
      THAN 1.


   02277'99                                                 RJA
                                              2

 1
           (2) A QUALIFIED TAXPAYER WHO IS PARTICIPATING IN THE

 2
      MICHIGAN ESSENTIAL HEALTH PROVIDER PROGRAM OR J-1 VISA PROGRAM

 3
      MAY CLAIM THE CREDIT ALLOWED UNDER THIS SECTION ONLY IN THE 5 TAX

 4
      YEARS BEGINNING IN THE YEAR AFTER WHICH THE TAXPAYER HAS COM-

 5
      PLETED HIS OR HER OBLIGATION UNDER THAT PROGRAM.

 6
           (3) IF A QUALIFIED TAXPAYER INTERRUPTS HIS OR HER FULL-TIME

 7
      OR PART-TIME MEDICAL CARE PRACTICE TO PARTICIPATE IN A CONTINUING

 8
      EDUCATION PROGRAM OR A MEDICALLY RELATED SABBATICAL THAT LASTS

 9
      MORE THAN 1 YEAR, THE QUALIFIED TAXPAYER MAY CLAIM THE CREDIT

10
      ALLOWED UNDER THIS SECTION FOR ANY 5 TAX YEARS WITHIN THE 8 CON-

11
      SECUTIVE TAX YEARS THAT INCLUDE THE PROGRAM OR SABBATICAL AND

12
      THAT BEGIN WITH THE FIRST YEAR THAT THE QUALIFIED TAXPAYER

13
      CLAIMED A CREDIT UNDER THIS SECTION.

14
           (4) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

15
      YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY THIS

16
      SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR,

17
      THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

18
      SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET TAX

19
      LIABILITY IN SUBSEQUENT TAX YEARS FOR 5 YEARS OR UNTIL USED UP,

20
      WHICHEVER OCCURS FIRST.

21
           (5) THE DEPARTMENT OF COMMUNITY HEALTH SHALL CERTIFY TO THE

22
      DEPARTMENT OF TREASURY WHETHER A TAXPAYER WHO CLAIMS A CREDIT

23
      UNDER THIS SECTION IS A QUALIFIED TAXPAYER OR, ONLY AS PROVIDED

24
      IN SUBSECTION (7), IS A PHYSICIAN WHO HAS A FULL-TIME OR

25
      PART-TIME MEDICAL CARE PRACTICE IN A NONDESIGNATED AREA.

26
           (6) A TAXPAYER WHO CLAIMS THE CREDIT UNDER THIS SECTION

27
      SHALL ATTACH TO HIS OR HER ANNUAL RETURN ON WHICH THE CREDIT IS



   02277'99
                                   3

 1
      CLAIMED AN AFFIDAVIT, IN A FORM PRESCRIBED BY THE DEPARTMENT OR

 2
      THAT CONTAINS SUBSTANTIALLY THE SAME INFORMATION, THAT STATES

 3
      THAT THE TAXPAYER MEETS ALL OF THE CONDITIONS AND CRITERIA FOR

 4
      CLAIMING THE CREDIT UNDER THIS SECTION.

 5
           (7) IF, AFTER A QUALIFIED TAXPAYER HAS CLAIMED A CREDIT

 6
      ALLOWED IN THIS SECTION, THE DEPARTMENT OF COMMUNITY HEALTH

 7
      CHANGES THE DESIGNATION OF THE AREA WHERE THE TAXPAYER'S MEDICAL

 8
      PRACTICE IS LOCATED FROM THAT OF A DESIGNATED AREA TO THAT OF A

 9
      NONDESIGNATED AREA, THE TAXPAYER MAY CONTINUE TO CLAIM THE CREDIT

10
      AS ALLOWED IN THIS SECTION AS IF THAT DESIGNATION HAD NOT BEEN

11
      CHANGED.

12
           (8) AS USED IN THIS SECTION:

13
           (A) "DESIGNATED AREA" MEANS A HEALTH PROFESSIONAL SHORTAGE

14
      AREA AS CERTIFIED BY THE DIRECTOR OF THE DEPARTMENT OF COMMUNITY

15
      HEALTH.

16
           (B) "FULL-TIME MEDICAL CARE PRACTICE" MEANS A PHYSICIAN'S

17
      MEDICAL PRACTICE OF 40 HOURS OR MORE PER WEEK.

18
           (C) "PART-TIME MEDICAL CARE PRACTICE" MEANS A PHYSICIAN'S

19
      MEDICAL PRACTICE OF LESS THAN 40 HOURS PER WEEK.

20
           (D) "PHYSICIAN" MEANS THAT TERM AS DEFINED IN SECTION

21
      17001(1)(C) OR 17501(1)(B) OF THE PUBLIC HEALTH CODE, 1978

22
      PA 368, MCL 333.17001 AND 333.17501, WHO IS BOARD CERTIFIED IN 1

23
      OF THE FOLLOWING SPECIALTIES:

24
           (i) CARDIOLOGY.

25
           (ii) FAMILY PRACTICE.

26
           (iii) GENERAL PRACTICE.





   02277'99
                                   4

 1
           (iv) NEPHROLOGY.

 2
           (v) PEDIATRICS.

 3
           (vi) INTERNAL MEDICINE.

 4
           (E) "QUALIFIED TAXPAYER" MEANS A PHYSICIAN WHO HAS A

 5
      FULL-TIME MEDICAL CARE PRACTICE OR PART-TIME MEDICAL CARE PRAC-

 6
      TICE IN A DESIGNATED AREA.












































   02277'99          Final page.                            RJA