HOUSE BILL No. 6191


     June 13, 2002, Introduced by Reps. Kolb, Thomas and Phillips 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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        2002, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

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        THIS ACT EQUAL TO 20% OF THE AMOUNT OF THE EARNED INCOME CREDIT

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        THAT THE TAXPAYER WAS ELIGIBLE TO CLAIM FOR THE TAX YEAR UNDER

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        SECTION 32 OF THE INTERNAL REVENUE CODE.

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             (2) IF THE CREDIT ALLOWED BY THIS SECTION EXCEEDS THE TAX

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        LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THE STATE TREASURER

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        SHALL REFUND THE EXCESS TO THE TAXPAYER WITHOUT INTEREST, EXCEPT

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        AS PROVIDED IN SECTION 30 OF 1941 PA 122, MCL 205.30.

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             (3) MARRIED TAXPAYERS WHO FILE THEIR STATE TAX RETURN

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        SEPARATELY MAY APPLY THE CREDIT ALLOWED BY THIS SECTION AGAINST


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        THE TAX LIABILITY OF EITHER TAXPAYER OR DIVIDE THE CREDIT BETWEEN

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        THEM, AS THEY ELECT.

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             (4) THE STATE TREASURER SHALL ANNUALLY ATTEMPT TO INFORM

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        TAXPAYERS WHO MAY BE ELIGIBLE TO RECEIVE THE CREDIT ALLOWED BY

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        THIS SECTION OF THE CREDIT'S AVAILABILITY.  TO DETERMINE WHETHER

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        A TAXPAYER MAY BE ELIGIBLE FOR THE CREDIT FOR PURPOSES OF INFORM-

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        ING THE TAXPAYER OF ITS AVAILABILITY, THE STATE TREASURER SHALL

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        USE APPROPRIATE AND AVAILABLE DATA, INCLUDING, BUT NOT LIMITED

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        TO, DATA AVAILABLE FROM THE UNITED STATES DEPARTMENT OF TREASURY,

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        THE INTERNAL REVENUE SERVICE, AND STATE INCOME TAX RETURNS FROM

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        PRECEDING TAX YEARS.

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             (5) THE STATE TREASURER SHALL PREPARE AN ANNUAL REPORT CON-

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        TAINING STATISTICAL INFORMATION REGARDING CREDITS CLAIMED UNDER

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        THIS SECTION FOR THE IMMEDIATELY PRECEDING TAX YEAR, INCLUDING

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        THE TOTAL AMOUNT OF CREDITS CLAIMED UNDER THE EARNED INCOME TAX

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        CREDIT, THE NUMBER OF CREDITS CLAIMED, AND THE AVERAGE VALUE OF

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        CREDITS CLAIMED BY TAXPAYERS WHOSE EARNED INCOME FALLS WITHIN

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        INCOME RANGES ESTABLISHED BY THE STATE TREASURER.





















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