HOUSE BILL No. 4213


     January 30, 1997, Introduced by Reps. Olshove, Freeman, Harder, Baade, Schauer, Willard, Hale, Anthony, Varga, DeHart, Llewellyn, LaForge, Hammerstrom, Wojno, Hanley, Martinez, Pitoniak, McBryde, Mathieu, Cherry, Cassis, Callahan, Baird and Dalman and referred to the Committee on Senior Citizens and Veterans Affairs.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 266.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 266.  (1) FOR THE 1997 TAX YEAR AND EACH TAX YEAR AFTER

 2    1997, IF A TAXPAYER CLAIMS A CREDIT FOR HOUSEHOLD AND DEPENDENT

 3    CARE SERVICES UNDER SECTION 21 OF THE INTERNAL REVENUE CODE ON

 4    HIS OR HER FEDERAL TAX RETURN, THE TAXPAYER MAY CLAIM A CREDIT ON

 5    HIS OR HER RETURN AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO

 6    THE AMOUNT SPENT IN THE TAX YEAR ON EMPLOYMENT-RELATED EXPENSES

 7    AS DEFINED IN SECTION 21 OF THE INTERNAL REVENUE CODE OR THE MAX-

 8    IMUM CREDIT AMOUNT ALLOWED UNDER THAT SECTION, WHICHEVER IS

 9    LESS.






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 1         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

 2    LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE

 3    CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE REFUNDED.


















































   00872'97          Final page.                            RJA