HB-5022, As Passed House, July 26, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5022

     A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.532) by adding section 272.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 272. (1) For tax years that begin after December 31,

2006, a taxpayer who is not an account holder may claim a credit

against the tax imposed by this act equal to 75% of the

contributions made in the tax year by the taxpayer to the reserve

fund of a fiduciary organization pursuant to the individual or

family development account program act.

     (2) If the amount of the credit allowed under this section

exceeds the tax liability of the taxpayer for the tax year, that

portion of the credit that exceeds the tax liability shall not be

refunded.

     (3) The credits under this section and section 36e of the

single business tax act, 1975 PA 228, MCL 208.36e, shall not exceed

an annual cumulative maximum amount of $1,000,000.00. The

determination of the maximum allowed under this subsection shall be

made as provided in the individual or family development account

program act.

     (4) As used in this section, "account holder", "fiduciary

organization", "individual or family development account", and

"reserve fund" mean those terms as defined in the individual or

family development account program act.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 5027 of the 93rd Legislature is enacted into

law.