Bill Text: MI HB4083 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Income tax; credit; promise grant tax credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.532) by adding sec. 279.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-18 - Printed Bill Filed 01/14/2011 [HB4083 Detail]
Download: Michigan-2011-HB4083-Introduced.html
HOUSE BILL No. 4083
January 13, 2011, Introduced by Rep. Slavens 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 279.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 279. (1) Except as otherwise provided in subsection (3),
for tax years that begin after December 31, 2009, a qualified
taxpayer that has received a certificate from the department
specifying the amount of the Michigan promise credit that the
taxpayer is eligible to receive may claim a credit against the tax
imposed by this act equal to $4,000.00 less the amount of any
payment received by the taxpayer under the Michigan promise grant
act, 2006 PA 479, MCL 390.1621 to 390.1628. The department may
determine procedures necessary for issuing certificates and
providing credits under this section.
(2) If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
portion of the credit that exceeds the tax liability shall be
refunded.
(3) Notwithstanding subsections (1) and (2), if a promise zone
authority formed under the Michigan promise zone authority act,
2008 PA 549, MCL 390.1661 to 390.1679, presents certification on a
properly completed form prescribed by the department that the
qualified taxpayer has authorized the promise zone authority to
receive the Michigan promise credit under this section instead of
the taxpayer, then the qualified taxpayer at the time of filing a
return shall not claim the Michigan promise credit on his or her
return but instead the credit under this section shall be
calculated by the department and paid to the promise zone
authority.
(4) As used in this section:
(a) "Approved postsecondary educational institution" means any
of the following:
(i) A public or private college or university, junior college,
or community college that grants degrees or certificates and is
located in this state.
(ii) A postsecondary educational institution, other than an
educational institution described in subparagraph (i), that is
located in this state, grants degrees, certificates, or other
recognized credentials, and is designated by the department as an
approved postsecondary educational institution.
(b) "High school graduate" means an individual who has
received a high school diploma from a high school or passed the
general educational development (GED) diploma test or any other
high school graduate equivalency examination approved by the state
board of education.
(c) "Qualified taxpayer" means a taxpayer who complies with
all of the following:
(i) Has become a high school graduate after 2006.
(ii) After 2008 was awarded an associate degree or a 2-year
certificate of completion in a vocational training program at an
approved postsecondary educational institution, completed a
comparable vocational education program approved by the department
at an approved postsecondary educational institution, or awarded a
bachelor's degree at an approved postsecondary educational
institution within 10 years of his or her initial enrollment in an
approved postsecondary educational institution.
(iii) Is not eligible to be claimed as a dependent on another
taxpayer's return for the tax year.
(iv) Is a full-year resident of this state for the tax year
following the year in which the taxpayer met the requirement of
subparagraph (ii).
(v) Has received compensation subject to withholding under
this act or from self-employment, as a partner in a partnership or
shareholder in a subchapter S corporation in the tax year following
the year in which the taxpayer met the requirement of subparagraph
(ii).