January 25, 2005, Introduced by Senator SCOTT and referred to the Committee on Finance.
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) For tax years that begin after December 31,
2004, a taxpayer may claim a credit against the tax imposed by this
act equal to the amount paid in the tax year as premiums for health
care insurance for the taxpayer and the taxpayer's immediate family
members to the extent not paid or reimbursed to the taxpayer from
any other source.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that amount that
exceeds the tax liability shall be refunded.
(3) As used in this section:
(a) "Health care insurance" means any cost paid by the
taxpayer for health coverage under a policy, contract, certificate,
or self-funded plan.
(b) "Immediate family members" means the spouse, parents, and
children of the taxpayer claimed by the taxpayer as dependents for
federal income tax purposes.
(c) "Policy, contract, or certificate" means a policy,
contract, or certificate issued under the insurance code of 1956,
1956 PA 218, MCL 500.100 to 500.8302, or a certificate issued by a
nonprofit health care corporation operating under the nonprofit
health care corporation reform act, 1980 PA 350, MCL 550.1101 to
550.1704.