SENATE BILL NO. 772


   September 29, 1999, Introduced by Senators SHUGARS, MC COTTER,
        YOUNG, HAMMERSTROM, SIKKEMA, JOHNSON, BYRUM, ROGERS, STILLE
        and DUNASKISS 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 267.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 267.  (1) FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1999 TAX YEAR, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX

 3    IMPOSED BY THIS ACT EQUAL TO 50% OF THE TOTAL CONTRIBUTIONS MADE

 4    BY THE TAXPAYER IN THE TAX YEAR TO EDUCATIONAL ORGANIZATIONS NOT

 5    TO EXCEED $100.00, OR $200.00 FOR A HUSBAND AND WIFE FILING A

 6    JOINT RETURN.

 7         (2) IF THE AMOUNT OF THE CREDIT EXCEEDS THE TAX LIABILITY OF

 8    THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE CREDIT THAT

 9    EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.

10         (3) AS USED IN THIS SECTION:




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 1         (A) "EDUCATIONAL ORGANIZATION" MEANS ANY OF THE FOLLOWING:

 2         (i) A SCHOOL DISTRICT.

 3         (ii) A PUBLIC SCHOOL ACADEMY OPERATED UNDER THE REVISED

 4    SCHOOL CODE, 1976 PA 451, MCL 380.1 TO 380.1852.

 5         (iii) AN EDUCATIONAL FOUNDATION.

 6         (iv) A CONTINUING EDUCATION, A COMMUNITY EDUCATION, OR
             AN

 7    ADULT EDUCATION PROGRAM OPERATED BY A SCHOOL DISTRICT OR A PUBLIC

 8    SCHOOL ACADEMY.

 9         (B) "SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT, LOCAL ACT

10    SCHOOL DISTRICT, OR INTERMEDIATE SCHOOL DISTRICT AS THOSE TERMS

11    ARE DEFINED IN THE REVISED SCHOOL CODE, 1976 PA 451, MCL 380.1 TO

12    380.1852.
































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