Bill Text: MI HB4006 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Individual income tax; credit; promise grant tax credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding Sec. 279.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-01-22 - Printed Bill Filed 01/10/2013 [HB4006 Detail]

Download: Michigan-2013-HB4006-Introduced.html

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HOUSE BILL No. 4006

 

January 9, 2013, 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 206.713) 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).

 

     Enacting section 1. This amendatory act is retroactive and

 

effective for taxes levied after December 31, 2009.