HOUSE BILL No. 5577

 

January 24, 2006, Introduced by Reps. Angerer, Gleason, Mayes, Clemente, Wojno, Espinoza, Leland, Farrah, Donigan, Tobocman, Plakas, Kathleen Law and Lemmons, III and referred to the Committee on Tax Policy.

 

     A bill to amend 1975 PA 228, entitled

 

"Single business tax act,"

 

(MCL 208.1 to 208.145) by adding section 35e.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 35e. (1) For tax years that begin after December 31,

 

2005, a taxpayer may claim a credit against the tax imposed under

 

this act equal to the salary, wages, or other compensation that

 

when added to all military pay and the value of military allowances

 

received by the eligible employees would be equal to or less than

 

the amount the taxpayer would have paid eligible employees had the

 

eligible employees not been on active military duty for the period

 

of time during which those eligible employees were on active

 

military duty paid in tax years that begin after December 31, 2005


 

to eligible employees.

 

     (2) Except as provided in subsection (3), 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 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 until the excess credit is used

 

up.

 

     (3) The credit allowed under this section shall be considered

 

a refundable credit only for taxpayers subject to this act that

 

have no tax liability or that are not required to file a return for

 

the tax year for which they are claiming the credit allowed under

 

this section.

 

     (4) As used in this section:

 

     (a) "Active duty status" means full-time duty in the armed

 

forces other than active duty that is exclusively for training

 

purposes.

 

     (b) "Armed forces of the United States" means the United

 

States army, navy, marine corps, air force, coast guard, and other

 

military force designated by congress as part of the armed forces

 

of the United States including the reserve components.

 

     (c) "Eligible employee" means an individual who is in the

 

armed forces of the United States or a member of the Michigan

 

national guard on active duty status.