October 16, 2007, Introduced by Reps. Proos, Johnson, Virgil Smith, Ball, Angerer, Acciavatti, Pavlov, Moss, Marleau, Palsrok and Huizenga and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 253.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 253. (1) For tax years that begin after December 31,
2007, subject to the applicable limitations provided by this
section, a taxpayer may claim a credit against the tax imposed by
this act equal to 50% of the total amount invested in a program
approved by the Michigan state housing development authority that
provides neighborhood assistance, job training or education for
individuals who are not employed by the taxpayer, or community
services or crime prevention in an eligible distressed area or
contributed by the taxpayer to a neighborhood organization that
engages in the activities of providing neighborhood assistance, job
training or education for individuals who are not employed by the
taxpayer, or community services or crime prevention in an eligible
distressed area, or both.
(2) For a taxpayer other than a resident estate or trust, the
amount allowable as a credit under this section for a tax year
shall not exceed $100.00 or, for a husband and wife filing a joint
return as provided in section 311, $200.00. For a resident estate
or trust, the amount allowable as a credit under this section for a
tax year shall not exceed 10% of the tax liability for the year as
determined without regard to this section or $5,000.00, whichever
is less, and shall not have been deducted in arriving at federal
taxable income. The credit allowed under this section shall not
exceed the tax liability of the taxpayer.
(3) A taxpayer shall not claim a credit under this section
unless the Michigan state housing development authority has issued
a certificate to the taxpayer. The taxpayer shall attach the
certificate to the return filed under this act on which a credit
under this section is claimed. The certificate required by this
subsection shall state all of the following:
(a) The taxpayer invested in an approved program or
contributed to a neighborhood organization that provides
neighborhood assistance or participates in an approved program.
(b) The amount of the investment or contribution made for the
designated tax year.
(c) The taxpayer's federal employer identification number or
the Michigan treasury number assigned.
(4) As used in this section:
(a) "Community services" means any type of counseling and
advice, emergency assistance, medical care, recreational
facilities, housing facilities, or economic development assistance
to individuals, groups, or neighborhood organizations in an
eligible distressed area.
(b) "Crime prevention" means any activity which aids in the
reduction of crime in an eligible distressed area.
(c) "Education" means any type of scholastic instruction or
scholarship assistance to an individual who resides in an eligible
distressed area that enables the individual to prepare for better
life opportunities.
(d) "Eligible distressed area" means that term as defined in
section 11 of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1411.
(e) "Job training" means any type of instruction provided to
an individual who resides in an eligible distressed area that
enables the individual to acquire vocational skills so that the
individual can become employable or be able to seek a higher grade
of employment.
(f) "Michigan state housing development authority" means the
authority created in section 21 of the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1421.
(g) "Neighborhood assistance" means either of the following:
(i) Furnishing financial assistance, labor, material, and
technical advice to aid in the physical or economic improvement of
any part or all of an eligible distressed area.
(ii) Furnishing technical advice to promote higher employment
in any neighborhood in this state.
(h) "Neighborhood organization" means any organization that is
exempt under section 501 of the internal revenue code and that
performs community services in an eligible distressed area.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5312(request no.
01411'07 **).
(b) Senate Bill No.____ or House Bill No. 5313(request no.
03642'07).