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.