HOUSE BILL No. 4326


     February 23, 1999, Introduced by Reps. Price, Cherry, Tesanovich, Brater, Martinez, Kelly, Hale, Scott, Vaughn, Prusi, LaForge, Schauer, Baird, Switalski and Kilpatrick 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 39d.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

 2    BEGINNING AFTER DECEMBER 31, 1998, A TAXPAYER MAY CLAIM A CREDIT

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

 4    THE TAXPAYER IN THE TAX YEAR TO PROVIDE CHILD CARE SERVICES FOR

 5    THE TAXPAYER'S EMPLOYEES AT A FACILITY THAT IS OPENED BY THE TAX-

 6    PAYER, LICENSED UNDER 1973 PA 116, MCL 722.111 TO 722.128, AND

 7    LOCATED AT THE TAXPAYER'S PLACE OF BUSINESS.

 8         (2) THE COST TO PROVIDE CHILD CARE SERVICES USED TO CALCU-

 9    LATE THE CREDIT UNDER THIS SECTION SHALL BE LESS THAN OR EQUAL TO

10    COSTS TO PROVIDE COMPARABLE CHILD CARE SERVICES IN THE SAME

11    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.










































   01057'99          Final page.                            RJA