SB-1402, As Passed Senate, November 13, 2008
SENATE BILL NO. 1402
(As amended, November 13, 2008)
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 277.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 277. (1) For the 2008 tax year and each tax year after
2008, a taxpayer may claim a credit against the tax imposed by this
act equal to <<4.35 PER CENTUM OF>> the amount of income derived from the
debt related to the sale or foreclosure of the taxpayer's principal
residence that was reported to the taxpayer in a federal income tax
form 1099-C and included in the taxpayer's adjusted gross income
for the tax year or $10,000.00, whichever is less.
(2) If the credit allowed by this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability shall not be refunded.
(3) As used in this section, "principal residence" means that
term as defined under section 7dd of the general property tax act,
1893 PA 206, MCL 211.7dd, and for which an exemption is granted
under section 7cc of the general property tax act, 1893 PA 206, MCL