SB-0043, As Passed Senate, April 20, 2006
SUBSTITUTE FOR
SENATE BILL NO. 43
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 272.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 272. (1) Except as otherwise provided in this section,
for tax years that begin after December 31, 2005, a qualified
taxpayer with a full-time or part-time medical care practice may
credit $2,500.00 against the tax imposed by this act for a maximum
of 3 consecutive tax years. A credit claimed under this section by
a qualified taxpayer with a part-time medical care practice shall
equal $2,500.00 multiplied by a fraction the numerator of which is
the average number of hours per week of that part-time medical care
practice and the denominator of which is 40. A fraction under this
subsection shall not be greater than 1.
(2) A qualified taxpayer who is participating in the Michigan
essential health provider program may claim the credit allowed
under this section only in the 3 tax years beginning in the year
after which the taxpayer has completed his or her obligation under
that program.
(3) If a qualified taxpayer interrupts his or her full-time or
part-time medical care practice to participate in a continuing
education program or a medically related sabbatical that lasts more
than 1 year, the qualified taxpayer may claim the credit allowed
under this section for any 3 tax years within the 5 consecutive tax
years that include the program or sabbatical and that begin with
the first year that the qualified taxpayer claimed a credit under
this section.
(4) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed by this section
exceed the taxpayer's tax liability for the tax year, that portion
that exceeds the tax liability for the tax year shall not be
refunded but may be carried forward to offset tax liability in
subsequent tax years for 5 years or until used up, whichever occurs
first.
(5) The department of community health shall certify to the
department of treasury whether a taxpayer who claims a credit under
this section is a qualified taxpayer or, only as provided in
subsection (7), is a physician who has a full-time or part-time
medical care practice in a nondesignated area.
(6) A taxpayer who claims the credit under this section shall
attach to his or her annual return on which the credit is claimed
an affidavit, in a form prescribed by the department or that
contains substantially the same information, that states that the
taxpayer meets all of the conditions and criteria for claiming the
credit under this section.
(7) If, after a qualified taxpayer has claimed a credit
allowed in this section, the department of community health changes
the designation of the area where the taxpayer's medical practice
is located from that of a designated area to that of a
nondesignated area, the taxpayer may continue to claim the credit
as allowed in this section as if that designation had not been
changed.
(8) As used in this section:
(a) "Designated area" means a health professional shortage
area as certified by the director of the department of community
health.
(b) "Full-time medical care practice" means a physician's
medical practice of 40 hours or more per week.
(c) "Part-time medical care practice" means a physician's
medical practice of less than 40 hours per week.
(d) "Physician" means that term as defined in section
17001(1)(c) or 17501(1)(b) of the public health code, 1978 PA 368,
MCL 333.17001 and 333.17501.
(e) "Qualified taxpayer" means a physician who provides
primary care to patients including indigent patients as part of his
or her full-time medical care practice or part-time medical care
practice in a designated area.