HB-5021, As Passed House, July 26, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5021

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

(MCL 208.1 to 208.145) by adding section 36e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 36e. (1) For tax years that begin after December 31,

2006, a qualified financial institution or taxpayer may claim a

credit against the tax imposed by this act equal to 75% of the

contributions made by the qualified financial institution or by the

taxpayer in the tax year to the reserve fund of a fiduciary

organization pursuant to the individual or family development

account program act.

     (2) If the credit allowed under this section for the tax year

and any unused carryforward of the credit allowed under this

section exceed the tax liability of the qualified financial

institution or taxpayer for the tax year, the excess shall not be

refunded, but may be carried forward as an offset to the tax

liability in subsequent tax years for 10 tax years or until the

excess credit is used up, whichever occurs first.

     (3) The credits under this section and section 272 of the

income tax act of 1967, 1967 PA 281, MCL 206.272, shall not exceed

an annual cumulative maximum amount of $1,000,000.00. The

determination of the maximum allowed under this subsection shall be

made as provided in the individual or family development account

program act.

     (4) As used in this section:

     (a) "Individual or family development account" means an

account established pursuant to the individual or family

development account program act.

     (b) "Fiduciary organization" and "reserve fund" mean those

terms as defined in the individual or family development account

program act.

     (c) "Qualified financial institution" means a financial

institution as defined in the individual or family development

account program act.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 5027 of the 93rd Legislature is enacted into

law.