SENATE BILL No. 662

 

 

September 15, 2011, Introduced by Senator JANSEN and referred to the Committee on Finance.

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 510 (MCL 206.510), as amended by 2011 PA 38.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 510. (1) "Income" means the sum of federal adjusted gross

 

income as defined in the internal revenue code plus all income

 

specifically excluded or exempt from the computations of the

 

federal adjusted gross income. except that beginning with the 1988

 

tax year, a deduction for a carryback or carryover of a net

 

operating loss shall not exceed federal modified taxable income as

 

defined in section 172(b)(2) of the internal revenue code. Also, a

 

person who is enrolled in an accident or health insurance plan may

 

deduct from income the amount that person paid in premiums in the

 

tax year for that insurance plan for the person's family. Income

 


does not include any of the following:

 

     (a) The first $300.00 of gifts in cash or kind from

 

nongovernmental sources.

 

     (b) The first $300.00 received from awards, prizes, lottery,

 

bingo, or other gambling winnings.

 

     (c) Surplus foods.

 

     (d) Relief in kind supplied by a governmental agency.

 

     (e) Payments or credits under this part.

 

     (f) A governmental grant that has to be used by the claimant

 

for rehabilitation of the claimant's homestead.

 

     (g) Stipends received by a person 60 years of age or older who

 

is acting as a foster grandparent under the foster grandparent

 

program authorized pursuant to section 211 of part B of title II of

 

the domestic volunteer service act of 1973, Public Law 93-113, 42

 

USC 5011, or who is acting as a senior companion pursuant to

 

section 213 of part C of title II of the domestic volunteer service

 

act of 1973, Public Law 93-113, 42 USC 5013.

 

     (h) Amounts deducted from monthly social security or railroad

 

retirement benefits for medicare premiums.

 

     (i) Contributions by an employer to life, accident, or health

 

insurance plans.

 

     (j) Energy assistance grants and energy assistance tax

 

credits.

 

     (2) "Owner" means a natural person who owns or is purchasing a

 

homestead under a mortgage or land contract, who owns or is

 

purchasing a dwelling situated on the leased lands of another, or

 

who is a tenant-stockholder of a cooperative housing corporation.

 


     Enacting section 1. This amendatory act takes effect January

 

1, 2012.