HOUSE BILL No. 5593

 

May 3, 2012, Introduced by Rep. Horn 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 206.713) by adding section 675.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 675. (1) Except as otherwise provided under this section,

 

a taxpayer may claim a credit against the tax imposed by this part

 

in an amount equal to 40% of the value of the salaries, wages, or

 

other remuneration for services paid to a qualified intern or

 

$600.00 of the salaries, wages, or other remuneration for services

 

paid to a qualified intern, whichever is less. Notwithstanding the

 

limitation under this subsection, the maximum credit allowed under

 

this section shall be increased by $75.00 per qualified intern for

 

a taxpayer that employs 3 or more qualified interns during the tax

 

year.

 

     (2) Except as otherwise provided under this subsection, if the


 

credit allowed under this section for the tax year and any unused

 

carryforward of the credit allowed under this section exceed the

 

taxpayer's tax liability for the tax year, that portion that

 

exceeds the tax liability for the tax year shall not be refunded

 

but may be carried forward to offset tax liability in subsequent

 

tax years for 10 years or until used up, whichever occurs first.

 

     (3) As used in this section:

 

     (a) "State institution of higher education" means a public

 

community or junior college established under section 7 of article

 

VIII of the state constitution of 1963 or part 25 of the revised

 

school code, 1976 PA 451, MCL 380.1601 to 380.1607, or a state

 

university described in section 4, 5, or 6 of article VIII of the

 

state constitution of 1963.

 

     (b) "Qualified intern" means an individual enrolled and in

 

good standing at a vocational school or a state institution of

 

higher education who is employed and supervised in this state in a

 

position that provides training and experience to the individual in

 

his or her chosen field of study, and is paid at least the minimum

 

wage established by law at the time of employment by the taxpayer

 

during a term of employment that lasts at least 6 weeks and

 

includes a minimum of 14 hours of service per week.