SENATE BILL NO. 375


   February 24, 1999, Introduced by Senator GOUGEON, GOSCHKA and
        HAMMERSTROM 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 267.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                                  SEC. 267.  (1) FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER

 2                             THE 1999 TAX YEAR, A TAXPAYER MAY CREDIT AGAINST THE TAX IMPOSED

 3                             BY THIS ACT FOR THE TAX YEAR AN AMOUNT NOT TO EXCEED $5,000.00

 4                             ATTRIBUTABLE TO THE VALUE OF A WORKING MOTOR VEHICLE DONATED IN

 5                             THAT TAX YEAR TO THE FAMILY INDEPENDENCE AGENCY BY THE TAXPAYER

 6                             FOR USE BY A PERSON WHO HAS EXECUTED A SOCIAL CONTRACT DESCRIBED

 7                             UNDER SECTION 57E OF THE SOCIAL WELFARE ACT, 1939 PA 280, MCL

 8                             400.57E.

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

10                             LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THE PORTION OF THE

11                             CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.


   01407'99               Final Page                         RJA