SENATE BILL No. 78

February 1, 2001, Introduced by Senators BULLARD, SCHUETTE, GOUGEON, JAYE, HAMMERSTROM, DUNASKISS, MC COTTER, SIKKEMA, JOHNSON,

MC MANUS, SHUGARS, STEIL and CHERRY and referred to the Committee

on Finance.

A bill to amend 1975 PA 228, entitled

"Single business tax act,"

(MCL 208.1 to 208.145) by adding section 39d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 39D. (1) FOR TAX YEARS BEGINNING ON AND AFTER JANUARY

2 1, 2002, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

3 THIS ACT EQUAL TO 25% OF THE COSTS PAID BY THE TAXPAYER IN THE

4 TAX YEAR TO BUILD A NEW CHILD CARE CENTER OR TO REMODEL AN EXIST-

5 ING CHILD CARE CENTER THAT WILL BE USED TO CARE FOR THE CHILDREN

6 OF THE TAXPAYER'S EMPLOYEES.

7 (2) THE CREDIT ALLOWED UNDER THIS SECTION FOR EACH TAXPAYER

8 SHALL NOT EXCEED A TOTAL OF $150,000.00 FOR ALL TAX YEARS FOR THE

9 BUILDING OR REMODELING OF A SINGLE CHILD CARE CENTER.

10 (3) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

11 YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY THIS

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1 SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR,

2 THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

3 SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET TAX

4 LIABILITY IN SUBSEQUENT TAX YEARS FOR 10 YEARS OR UNTIL USED UP,

5 WHICHEVER OCCURS FIRST.

6 (4) AS USED IN THIS SECTION, "CHILD CARE CENTER" MEANS THAT

7 TERM AS DEFINED IN SECTION 1 OF 1973 PA 116, MCL 722.111.

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