February 3, 2004, Introduced by Senators PATTERSON, BISHOP, KUIPERS, HAMMERSTROM, GEORGE, VAN WOERKOM, TOY, BIRKHOLZ, GARCIA, BROWN, HARDIMAN, ALLEN and GOSCHKA 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 269; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 269. (1) For tax years that begin after December 31,
2 2003, a taxpayer, other than a resident estate or trust, may
3 claim a credit against the tax imposed by this act equal to 3.3%
4 of the amount contributed in the tax year by the taxpayer to a
5 medical care savings account to the extent that the contribution
6 is accepted by an account administrator pursuant to the medical
7 care savings account program act.
8 (2) The credit under this section shall not be taken unless
9 the taxpayer who establishes a medical care savings account or on
10 whose behalf a medical care savings account is established is not
1 covered by any health coverage policy, certificate, or contract
2 or self-funded plan other than a qualified higher deductible
3 health plan purchased pursuant to the medical care savings
4 account program act.
5 (3) If the taxpayer files a joint return, each joint filer
6 may take the credit under this section if he or she meets the
7 restriction under subsection (2). If the taxpayer is married and
8 files a single return or is not married, the taxpayer may take
9 the credit under this section if he or she meets the restriction
10 under subsection (2).
11 (4) A taxpayer shall deduct from the amount of a contribution
12 used to calculate the credit under this section any amount that
13 the taxpayer withdraws in the tax year for a purpose other than 1
14 of the following:
15 (a) A purpose for which those funds may be utilized as
16 described in section 4(3) of the medical care savings account
17 program act.
18 (b) A distribution or transfer pursuant to section 5(3) or
19 (5) of the medical care savings account program act.
20 (5) If the amount of the credit exceeds the tax liability of
21 the taxpayer for the tax year, that portion of the credit that
22 exceeds the tax liability shall not be refunded.
23 (6) As used in this section:
24 (a) "Account administrator" and "medical care savings
25 account" mean those terms as defined in the medical care savings
26 account program act.
27 (b) "Medical care savings account program act" means the
1 medical care savings account program act.
2 Enacting section 1. Section 264 of the income tax act of
3 1967, 1967 PA 281, MCL 206.264, is repealed.
4 Enacting section 2. This amendatory act does not take
5 effect unless Senate Bill No. 946
6 of the 92nd Legislature is enacted into
7 law.