SENATE BILL NO. 202


   February 2, 1999, Introduced by Senator GOUGEON 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 268.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 268.  (1) FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1999 TAX YEAR, IF A TAXPAYER CLAIMS A CREDIT FOR HOUSEHOLD

 3    AND DEPENDENT CARE SERVICES UNDER SECTION 21 OF THE INTERNAL REV-

 4    ENUE CODE ON HIS OR HER FEDERAL TAX RETURN, THE TAXPAYER MAY

 5    CLAIM A CREDIT ON HIS OR HER RETURN AGAINST THE TAX IMPOSED BY

 6    THIS ACT EQUAL TO 25% OF THE AMOUNT OF THE CREDIT CLAIMED ON HIS

 7    OR HER FEDERAL TAX RETURN FOR THE SAME TAX YEAR.

 8         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

 9    LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE

10    CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE REFUNDED.




   00127'99               Final page.                       RJA