Bill Text: MI HB5769 | 2011-2012 | 96th Legislature | Introduced


Bill Title: Income tax; credit; earned income tax credit and matching grant program; restore and create. Amends title & sec. 272 of 1967 PA 281 (MCL 206.272) & adds sec. 272a.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2012-08-15 - Printed Bill Filed 07/19/2012 [HB5769 Detail]

Download: Michigan-2011-HB5769-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5769

 

July 18, 2012, Introduced by Reps. Ananich, Dillon, Cavanagh, Townsend, Hammel and Tlaib and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending the title and section 272 (MCL 206.272), as amended by

 

2011 PA 38, and by adding section 272a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to meet deficiencies in state funds by providing for

 

the imposition, levy, computation, collection, assessment, and

 

enforcement by lien and otherwise of taxes on or measured by net

 

income; to prescribe the manner and time of making reports and

 

paying the taxes, and the functions of public officers and others

 

as to the taxes; to permit the inspection of the records of

 

taxpayers; to provide for interest and penalties on unpaid taxes;

 

to provide exemptions, credits and refunds of the taxes; to make

 

certain grants; to prescribe penalties for the violation of this


 

act; to provide an appropriation; and to repeal certain acts and

 

parts of acts.

 

     Sec. 272. (1) For the following tax years that begin after

 

December 31, 2007, a taxpayer may credit against the tax imposed by

 

this act an amount equal to the specified percentages of the credit

 

the taxpayer is allowed to claim as a credit under section 32 of

 

the internal revenue code for a tax year on a return filed under

 

this act for the same tax year:

 

     (a) For tax years that begin after December 31, 2007 and

 

before January 1, 2009, 10%.

 

     (b) For tax years that begin after December 31, 2008, and

 

before January 1, 2012, 20%.

 

     (c) For tax years that begin after December 31, 2011, 6%.

 

     (2) If the credit allowed by this section exceeds the tax

 

liability of the taxpayer for the tax year, the state treasurer

 

shall refund the excess to the taxpayer without interest, except as

 

provided in section 30 of 1941 PA 122, MCL 205.30.

 

     Sec. 272a. (1) The department shall establish and administer a

 

refundable earned income tax matching grant program to provide

 

incentives for qualified taxpayers to build savings and accrue

 

assets. Subject to the limitations provided under this section, the

 

program shall provide up to a 50% match of the funds directly

 

deposited into a qualified savings account for each qualified

 

taxpayer who directs at least $50.00 of his or her income tax

 

refund to be deposited into a qualified savings account and keeps

 

at least $50.00 of that money within that account for a minimum of

 

1 year. The grant under this program shall not exceed $150.00 per


 

taxpayer per tax year, or for a husband and wife filing a joint

 

return as provided in section 311, $300.00.

 

     (2) The legislature shall annually appropriate a sum

 

sufficient to implement this program.

 

     (3) As used in this section:

 

     (a) "Qualified savings account" means any type of savings

 

account considered appropriate by the department for purposes of

 

this program.

 

     (b) "Qualified taxpayer" means a taxpayer that claims a credit

 

under section 272 for the same tax year, or the tax year

 

immediately preceding the same tax year, for which the taxpayer is

 

seeking a matching grant under this program.

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