June 23, 2005, Introduced by Senators THOMAS and HARDIMAN and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding section 35d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35d. (1) For tax years that begin after December 31,
2005, a taxpayer may claim a credit against the tax imposed by this
act equal to the total of the following amounts:
(a) Contributions made in the tax year by the taxpayer to an
individual or family development account, not to exceed the maximum
allowable contribution under section 4 of the individual or family
development account program act.
(b) Contributions made in the tax year to the reserve fund of
a community development organization pursuant to the individual or
family development account program act if the taxpayer is not an
account holder.
(2) 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 for 10 tax
years or until the excess credit is used up, whichever occurs
first.
(3) A taxpayer may assign all or a portion of a credit allowed
under this section. A credit assignment under this subsection is
irrevocable. A taxpayer may claim a portion of a credit and assign
the remaining credit amount. An assignee shall not subsequently
assign a credit or any portion of a credit assigned under this
subsection. The credit assignment under this subsection shall be
made on a form prescribed by the department. The taxpayer shall
send a copy of the completed assignment form to the department in
the tax year in which the assignment is made. An assignee shall
attach a copy of the completed assignment form to its annual return
required under this act, for the tax year in which the assignment
is made and the assignee first claims a credit, which shall be the
same tax year.
(4) As used in this section, "account holder", "community
development organization", "individual or family development
account", and "reserve fund" mean those terms as defined in the
individual or family development account program act.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No. 640.
(b) Senate Bill No. 642.