HB-5022, As Passed Senate, December 6, 2006

SENATE 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 276.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 276. (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 credit under this section 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 all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 640.

     (b) Senate Bill No. 1393.