December 13, 2005, Introduced by Reps. Accavitti, Wojno, Miller and Cushingberry 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 275.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 275. (1) For tax years that begin after December 31,
2005, a taxpayer may claim a credit against the tax imposed under
this act equal to the cost paid in the tax year of a computer
system, application computer software, operating system software,
or system software that is used exclusively in the taxpayer's home
not to exceed $1,000.00, if the taxpayer has a child living in that
home who is less than 18 years of age and who the taxpayer claims
as a dependent under section 30(2) for the tax year in which the
credit under this section is claimed.
(2) The credit under this section shall be claimed by a
taxpayer only once every 5 years.
(3) 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.
(4) As used in this section:
(a) "Application computer software" means a set of statements
or instructions that when incorporated in a machine usable medium
is capable of causing a machine or device having information
processing capabilities to indicate, perform, or achieve a
particular business function, task, or result for the nontechnical
end user. Application computer software includes any other computer
software that does not qualify under subdivision (b) or (c).
(b) "Operating system software" means a set of statements or
instructions that when incorporated into a machine or device having
information processing capabilities is an interface between the
computer hardware and the application computer software or system
software.
(c) "System software" means a set of statements or
instructions that interacts with operating system software that is
developed, licensed, and intended for the exclusive use of data
processing professionals to build, test, manage, or maintain
application computer software for which a license agreement is
signed by the licensor and licensee at the time of the transfer of
the software and that is not transferred to the licensee as part of
or in conjunction with a sale or lease of computer hardware.