SENATE BILL No. 1425

September 18, 2002, Introduced by Senators HAMMERSTROM, BULLARD, HOFFMAN,

SHUGARS, GOSCHKA, BYRUM and GARCIA 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 270.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 270. (1) FOR TAX YEARS BEGINNING AFTER DECEMBER 31,

2 2002, A TAXPAYER MAY CREDIT AGAINST THE TAX IMPOSED BY THIS ACT

3 100% OF THE PREMIUMS PAID BY THE TAXPAYER IN THE TAX YEAR FOR

4 LONG-TERM CARE INSURANCE NOT TO EXCEED $1,000.00 EACH FOR THE

5 TAXPAYER AND THE TAXPAYER'S SPOUSE.

6 (2) IF THE AMOUNT OF THE CREDIT UNDER THIS SECTION EXCEEDS

7 THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THE PORTION

8 OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE

9 REFUNDED.

10 (3) AS USED IN THIS SECTION, "LONG-TERM CARE INSURANCE"

11 MEANS THAT TERM AS DEFINED IN SECTION 3901 OF THE INSURANCE CODE

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1 OF 1956, 1956 PA 218, MCL 500.3901, OR "LONG-TERM CARE COVERAGE"

2 AS THAT TERM IS DEFINED IN SECTION 420 OF THE NONPROFIT HEALTH

3 CARE CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1420.

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