HOUSE BILL No. 4731


     May 3, 2001, Introduced by Reps. Bob Brown, Woronchak, Raczkowski and Bovin and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 269.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 269.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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      2000, A TAXPAYER WHO, AFTER THE DATE ON WHICH THE PURCHASE OF A

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      HOMESTEAD IS FINAL, IS REQUIRED TO PURCHASE FLOOD INSURANCE ON

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      THAT HOMESTEAD MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY THIS

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      ACT EQUAL TO THE AMOUNT PAID BY THE TAXPAYER IN THE TAX YEAR TO

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      PURCHASE FLOOD INSURANCE ON THAT HOMESTEAD OR $100.00, WHICHEVER

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      IS LESS, IF THE MUNICIPALITY IN WHICH THE HOMESTEAD IS LOCATED

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      BEGAN PARTICIPATION IN THE NATIONAL FLOOD INSURANCE PROGRAM UNDER

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      THE NATIONAL FLOOD INSURANCE ACT OF 1968, TITLE XIII OF PUBLIC

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      LAW 90-448, 82 STAT. 572, AFTER THE DATE ON WHICH THE PURCHASE OF

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      THE HOMESTEAD BY THE TAXPAYER WAS FINAL.


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           (2) IF THE CREDIT AMOUNT ALLOWED UNDER THIS SECTION EXCEEDS

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      THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THE EXCESS

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      PORTION OF THE CREDIT SHALL NOT BE REFUNDED.

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           (3) AS USED IN THIS SECTION, "HOMESTEAD" MEANS THAT TERM AS

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      DEFINED IN SECTION 7DD OF THE GENERAL PROPERTY TAX ACT, 1893

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      PA 206, MCL 211.7DD.












































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