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.
