HOUSE BILL No. 4783


     May 14, 1997, Introduced by Reps. Schroer and Profit and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   by amending section 265 (MCL 206.265), as added by 1993 PA 128.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 265.  (1) For the  1991  1989 tax year and each tax

 2    year after  1991  1989, a taxpayer may credit against the tax

 3    imposed by this act for the tax year an amount equal to the tax

 4    paid in any prior tax year attributable to income received by the

 5    taxpayer in any prior tax year and repaid by the taxpayer during

 6    the tax year if the taxpayer is eligible for a deduction or

 7    credit against his or her federal tax liability pursuant to sec-

 8    tion 1341 of the internal revenue code based on the repayment for

 9    the tax year.  A credit under this section for a tax year is

10    allowed only if the repayment for which a deduction or credit was

11    taken pursuant to section 1341 of the internal revenue code is


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 1    not deducted in calculating the taxpayer's adjusted gross income

 2    for the tax year.

 3         (2) If the credit allowed under this section exceeds the tax

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

 5    credit that exceeds the tax liability shall be refunded.

 6         Enacting section 1.  This amendatory act is effective for

 7    tax years beginning after 1988.










































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