SB-1402, As Passed Senate, November 13, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1402

(As amended, November 13, 2008)

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.532) by adding section 277.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 277. (1) For the 2008 tax year and each tax year after

2008, a taxpayer may claim a credit against the tax imposed by this

act equal to <<4.35 PER CENTUM OF>> the amount of income derived from the

cancellation of

debt related to the sale or foreclosure of the taxpayer's principal

residence that was reported to the taxpayer in a federal income tax

form 1099-C and included in the taxpayer's adjusted gross income

for the tax year or $10,000.00, whichever is less.

(2) If the credit allowed by this section exceeds the tax

liability of the taxpayer for the tax year, that portion of the

credit that exceeds the tax liability shall not be refunded.