SENATE BILL NO. 1273 September 16, 1998, Introduced by Senators A. SMITH, DE BEAUSSAERT, PETERS, BYRUM, CHERRY and HART 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 266. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 266. (1) FOR THE 1998 TAX YEAR AND EACH TAX YEAR AFTER 2 THE 1998 TAX YEAR, A QUALIFIED TAXPAYER MAY CLAIM A CREDIT NOT TO 3 EXCEED $500.00 AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO 50% 4 OF THE COST PAID BY THE QUALIFIED TAXPAYER IN THE TAX YEAR FOR A 5 LONG-TERM CARE INSURANCE POLICY FOR THE QUALIFIED TAXPAYER IF THE 6 QUALIFIED TAXPAYER IS 65 YEARS OF AGE OR OLDER OR FOR A FAMILY 7 MEMBER OF THE TAXPAYER WHO IS 65 YEARS OF AGE OR OLDER. 8 (2) THE TOTAL AMOUNT OF CREDITS CLAIMED IN A TAX YEAR UNDER 9 THIS SECTION FOR OR ON BEHALF OF ANY 1 INDIVIDUAL SHALL NOT 10 EXCEED $500.00. 05698'98 RJA 2 1 (3) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX 2 LIABILITY OF THE QUALIFIED TAXPAYER, THAT PORTION OF THE CREDIT 3 THAT EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED TO THE QUALIFIED 4 TAXPAYER. 5 (4) AS USED IN THIS SECTION: 6 (A) "COST" MEANS ANY PREMIUMS PAID AND ANY ADDITIONAL COSTS 7 INCURRED BY THE TAXPAYER TO MAINTAIN THE LONG-TERM CARE INSURANCE 8 POLICY. 9 (B) "FAMILY MEMBER" MEANS A SPOUSE, PARENT, SIBLING, CHILD, 10 OR STEP-CHILD. 11 (C) "LONG-TERM CARE INSURANCE POLICY" MEANS THAT TERM AS 12 DEFINED IN SECTION 3901 OF THE INSURANCE CODE OF 1956, 1956 PA 13 218, MCL 500.3901. 14 (D) "QUALIFIED TAXPAYER" MEANS A TAXPAYER WHO IS A RESIDENT 15 OF THIS STATE AND WHO HAS ADJUSTED GROSS INCOME OF $100,000.00 OR 16 LESS FOR THE TAX YEAR IN WHICH THE CREDIT UNDER THIS SECTION IS 17 CLAIMED. 05698'98 Final page. RJA