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.