HOUSE BILL No. 4993


     June 26, 2001, Introduced by Reps. Hale, Raczkowski, Bogardus, Hardman and Lemmons 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:

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           SEC. 39D.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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      2001, A TAXPAYER THAT IS A MANUFACTURER OR WHOLESALE DISTRIBUTOR

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      OF PRESCRIPTION DRUGS THAT HAS A PROGRAM DESIGNED TO DELIVER FREE

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      OR LOW-COST PRESCRIPTION DRUGS TO INDIVIDUALS WHO PAY FOR THOSE

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      PRESCRIPTION DRUGS WITHOUT REIMBURSEMENT OR PAYMENT FROM ANY

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      SOURCE FOR THE COST OF THOSE PRESCRIPTION DRUGS MAY CLAIM A

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      CREDIT AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO 50% OF THE

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      DIFFERENCE BETWEEN THE STATE MEDICAID NEGOTIATED PRICE AND EITHER

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      OF THE FOLLOWING AS APPLICABLE:

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           (A) FOR A MANUFACTURER, THE COST TO MANUFACTURE THE

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      PRESCRIPTION DRUGS.


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           (B) FOR A WHOLESALE DISTRIBUTOR, THE WHOLESALE PRICE OF THE

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      PRESCRIPTION DRUGS.

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           (2) TO QUALIFY FOR THE CREDIT UNDER THIS SECTION, THE TAX-

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      PAYER SHALL PROVIDE A COMMUNITY EDUCATION AND PUBLIC AWARENESS

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      PROGRAM TO INFORM THE GENERAL PUBLIC ABOUT THE AVAILABILITY OF

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      FREE OR LOW-COST PRESCRIPTION DRUGS.

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           (3) THE CREDIT UNDER THIS SECTION SHALL NOT EXCEED 50% OF

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      THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR.

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           (4) AS USED IN THIS SECTION, "PRESCRIPTION DRUG" MEANS THAT

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      TERM AS DEFINED IN SECTION 17708 OF THE PUBLIC HEALTH CODE, 1978

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      PA 368, MCL 333.17708.


































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