HOUSE BILL No. 5844


     May 12, 1998, Introduced by Reps. Price, Cherry, Martinez, DeHart, Bogardus, Brewer, Hale, Anthony, Schauer, Hanley, Agee, Brater, Schroer, Schermesser, Callahan, Scott, Tesanovich, Hood and LaForge and referred to the Committee on Tax Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 39c.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 39C.  (1) SUBJECT TO SUBSECTION (2), FOR TAX YEARS

 2    BEGINNING AFTER DECEMBER 31, 1996, A TAXPAYER MAY CLAIM A CREDIT

 3    AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO THE COSTS PAID IN

 4    THE TAX YEAR TO PROVIDE CHILD CARE SERVICES FOR THE TAXPAYER'S

 5    EMPLOYEES AT A FACILITY THAT IS OPENED BY THE TAXPAYER, LICENSED

 6    UNDER 1973 PA 116, MCL 722.111 TO 722.128, AND LOCATED AT THE

 7    TAXPAYER'S PLACE OF BUSINESS.

 8         (2) THE COST OF CARE USED TO CALCULATE THE CREDIT UNDER THIS

 9    SECTION SHALL BE LESS THAN OR EQUAL TO COSTS FOR COMPARABLE CARE

10    IN THE SAME LOCALITY.




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 1         (3) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

 2    YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY THIS

 3    SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR,

 4    THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

 5    SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET TAX

 6    LIABILITY IN SUBSEQUENT TAX YEARS FOR 10 YEARS OR UNTIL USED UP,

 7    WHICHEVER OCCURS FIRST.










































   03048'97          Final page.                            RJA