Bill Text: MI SB0623 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Individual income tax; deductions; extension or renewal of certain qualified renaissance zones; allow. Amends sec. 31a of 1967 PA 281 (MCL 206.31a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-04-10 - Assigned Pa 0103'18 With Immediate Effect [SB0623 Detail]
Download: Michigan-2017-SB0623-Engrossed.html
SB-0623, As Passed Senate, December 6, 2017
SENATE BILL No. 623
October 10, 2017, Introduced by Senator HORN and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 31a (MCL 206.31a), as added by 2011 PA 314.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 31a. (1) Notwithstanding any other provision of this act
and for the 2012 tax year and each tax year after 2012, "taxable
income" means taxable income as determined under section 30 and,
except as otherwise provided, subsequently adjusted under this
section.
(2) For the 2012 tax year and each tax year after 2012 and to
the extent and for the duration provided in the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, to
determine taxable income, a qualified taxpayer may deduct, to the
extent included in adjusted gross income, an amount equal to the
sum of all of the following:
(a) Except as provided in subdivisions (b), (c), and (d),
income earned or received during the period of time that the
qualified taxpayer was a resident of a qualified renaissance zone.
(b) Interest and dividends received in the tax year during the
period that the qualified taxpayer was a resident of a qualified
renaissance zone.
(c) Capital gains received in the tax year prorated based on
the percentage of time that the asset was held by the qualified
taxpayer while the qualified taxpayer was a resident of the
qualified renaissance zone.
(d) Income received by the qualified taxpayer from winning an
on-line lottery game sponsored by this state only if the date on
which the drawing for that game was held was after the taxpayer
became a resident of a qualified renaissance zone and income
received by the qualified taxpayer from winning an instant lottery
game sponsored by this state only if the taxpayer was a resident of
a qualified renaissance zone on the validation date of the lottery
ticket for that game.
(3) Income used to calculate a deduction under any other
section of this act shall not be used to calculate a deduction
under this section.
(4) If a qualified taxpayer completes the residency
requirements under subsection (11)(e), the qualified taxpayer may
claim the deduction allowed under this section.
(5) To be eligible for the deduction under this section, a
taxpayer shall file an annual return under this act.
(6) A qualified taxpayer shall file a withholding form
prescribed by the department with his or her employer within 10
days after the date the taxpayer completes the requirements under
subsection (11)(e).
(7) If the department finds that a taxpayer has claimed a
deduction under this section to which he or she is not entitled,
the taxpayer is subject to the interest and penalty provisions
under 1941 PA 122, MCL 205.1 to 205.31.
(8) Any portion of taxable income derived from illegal
activity conducted anywhere shall not be used to calculate a
deduction under this section.
(9) The net operating loss deduction allowed under section
30(1)(n) shall be calculated without regard to the deductions
allowed under this section.
(10) If a taxpayer who was a qualified taxpayer during the tax
year changes status and is not a qualified taxpayer or vice versa,
income subject to tax under this act shall be determined separately
for income in each status.
(11) As used in this section:
(a) "Domicile" means a place where a person has his or her
true, fixed, and permanent home and principal establishment to
which, whenever absent, he or she intends to return, and domicile
continues until another permanent establishment is established.
(b)
"Qualified renaissance zone" means only those geographic
areas in a renaissance zone that were designated as a renaissance
zone under the Michigan renaissance zone act, 1996 PA 376, MCL
125.2681
to 125.2696, before January 1, 2012
. A qualified
renaissance
zone and, except for an
extension or renewal granted
under section 4(8) of the Michigan renaissance zone act, 1996 PA
376, MCL 125.2684, does not include any portion of a renaissance
zone for which an extension or renewal is approved after December
31, 2011.
(c) "Qualified taxpayer" means a taxpayer that is a resident
of a qualified renaissance zone and that has gross income not
exceeding $1,000,000.00 for any tax year for which the taxpayer
claims a credit under this section.
(d) "Renaissance zone" means that term as defined in section 3
of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2683.
(e) "Resident" means an individual domiciled in an area that
is a qualified renaissance zone for a period of 183 consecutive
days. A taxpayer may begin calculating the 183-day period during
the 183 days immediately preceding the designation of the area as a
qualified renaissance zone. Resident includes the estate of an
individual who was a resident of a qualified renaissance zone at
the time of death. After a taxpayer has completed the 183-day
residency requirement under this subdivision, the taxpayer is
considered to have been a resident of that qualified renaissance
zone beginning from the first day used to determine if the 183-day
residency requirement has been met.
