SB-1020, As Passed House, December 18, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1020

 

(As amended, December 10, 2008)

 

January 22, 2008, Introduced by Senators HUNTER, SCHAUER and THOMAS and referred to the Committee on Finance.

 

 

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

(MCL 208.1101 to 208.1601) by adding section 426.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 426. (1) For the <<2009>> tax year and each tax year after

 

<<2009>>, a qualified financial institution or taxpayer may claim a

 

credit against the tax imposed by this act equal to 75% of the

 

contributions made by the qualified financial institution or by the

 

taxpayer in the tax year to the reserve fund of a fiduciary

 

organization pursuant to the individual or family development

 

account program act, 2006 PA 513, MCL 206.701 to 206.711.

 

     (2) If the credit allowed under this section for the tax year

 


and any unused carryforward of the credit allowed under this

 

section exceed the tax liability of the qualified financial

 

institution or taxpayer for the tax year, the excess shall not be

 

refunded, but may be carried forward as an offset to the tax

 

liability in subsequent tax years for 10 tax years or until the

 

excess credit is used up, whichever occurs first.

 

     (3) The credits under this section and section 276 of the

 

income tax act of 1967, 1967 PA 281, MCL 206.276, shall not exceed

 

an annual cumulative maximum amount of $1,000,000.00. The

 

determination of the maximum allowed under this subsection shall be

 

made as provided in the individual or family development account

 

program act, 2006 PA 513, MCL 206.701 to 206.711.

 

     (4) As used in this section:

 

     (a) "Individual or family development account" means an

 

account established pursuant to the individual or family

 

development account program act, 2006 PA 513, MCL 206.701 to

 

206.711.

 

     (b) "Fiduciary organization" and "reserve fund" mean those

 

terms as defined in the individual or family development account

 

program act, 2006 PA 513, MCL 206.701 to 206.711.

 

     (c) "Qualified financial institution" means a financial

 

institution as defined in the individual or family development

 

account program act, 2006 PA 513, MCL 206.701 to 206.711.