HOUSE BILL No. 6576

 

October 29, 2008, Introduced by Rep. Proos and referred to the Committee on Tax Policy.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

(MCL 208.1101 to 208.1601) by adding section 461.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 461. (1) For tax years that begin after December 31,

 

2008, a taxpayer may claim a credit against the tax imposed under

 

this act equal to 10% of the qualified educational expenses

 

incurred during the tax year by the taxpayer on behalf of a

 

qualifying employee. The maximum credit allowed in any tax year

 

shall not exceed $600.00 for a qualifying employee.

 

     (2) If the amount of the credit allowed under this section

 

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

 

excess shall not be refunded but may be carried forward to offset

 


tax liability in subsequent tax years for 10 years or until used

 

up, whichever occurs first.

 

     (3) As used in this section:

 

     (a) "Institution of higher education" means an institution of

 

higher education or a community or junior college described in

 

section 4, 5, 6, or 7 of article VIII of the state constitution of

 

1963 or an independent nonprofit degree-granting institution of

 

postsecondary education in this state that is approved by the state

 

board of education.

 

     (b) "Qualified educational expenses" means the tuition and

 

fees charged to an individual who is enrolled in a course or

 

courses offered by an institution of higher education and who

 

successfully completed that course or courses with a grade of 75 or

 

above on a 100-point scale or its equivalent.

 

     (c) "Qualifying employee" means an individual who is employed

 

by the taxpayer for at least 40 hours per week.