SENATE BILL No. 187

 

 

February 8, 2007, Introduced by Senators VAN WOERKOM, GARCIA, KUIPERS and KAHN 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 273.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 273. (1) For tax years that begin after December 31,

 

2006, a taxpayer who is a qualified dentist may credit against the

 

tax imposed by this act an amount equal to the total amount of

 

payments made by the taxpayer in the tax year to repay the

 

taxpayer's student loans or $5,000.00, whichever is less.

 

     (2) The credit under this section may be claimed for a maximum

 

of 4 tax years.

 

     (3) If the amount of the credit allowed under 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.

 

     (4) As used in this section:

 

     (a) "Dental services" means services provided by a dentist as

 

part of his or her practice of dentistry.

 

     (b) "Dentist" and "practice of dentistry" mean those terms as

 

defined in section 16601 of the public health code, 1978 PA 368,

 

MCL 333.16601.

 

     (c) "Medicaid" means the program for medical assistance

 

administered by the department of community health under the social

 

welfare act, 1939 PA 280, MCL 400.1 to 400.119b.

 

     (d) "Qualified dentist" means a dentist who meets all of the

 

following criteria:

 

     (i) Is a resident of this state.

 

     (ii) Has his or her primary practice of dentistry located in

 

this state.

 

     (iii) Provides dental services to medicaid recipients for

 

reimbursement during the tax year for which the credit under this

 

section is claimed or provides dental services on a volunteer basis

 

to medicaid recipients at least 12 hours each month of the tax year

 

for which the credit under this section is claimed.