HOUSE BILL No. 4463


     March 6, 1997, Introduced by Rep. Willard 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 1998 TAX YEAR AND EACH TAX YEAR AFTER

 2    1998, 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 50% OF

 8    THE MAXIMUM CREDIT AMOUNT ALLOWED UNDER SECTION 21 OF THE INTER-

 9    NAL REVENUE CODE, WHICHEVER IS 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.


















































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