April 19, 2007, Introduced by Reps. Meisner, Miller, Rick Jones, Byrnes, Simpson, Young, Stahl, Gonzales, Clemente, Polidori, Lemmons, Griffin, Valentine and Huizenga and referred to the Committee on Commerce.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 273.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 273. (1) For tax years that begin on and after January 1,
2007, a taxpayer that is a new business may claim a credit against
the tax imposed under this act in an amount equal to the premiums
paid in the tax year for an eligible health benefit plan for the
taxpayer or the taxpayer's immediate family. A taxpayer may only
claim the credit for the first 2 years of operation of the new
business. A credit under this section shall not be claimed for more
than a total of 2 tax years.
(2) The amount allowable as a credit under this section for a
tax year shall not exceed $1,000.00.
(3) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that amount that
exceeds the tax liability shall not be refunded.
(4) As used in this section:
(a) "Carrier" means a health insurer, health maintenance
organization, or health care corporation.
(b) "Eligible health benefit plan" means any individual or
group contract, policy, or certificate of health, accident, and
sickness insurance or coverage issued by a carrier. Eligible health
benefit plan does not include a contract, policy, or certificate
that provides coverage only for dental, vision, specified accident
or accident-only coverage, credit, disability income, hospital
indemnity, long-term care insurance, medicare supplement, coverage
issued as a supplement to liability insurance, and specified
disease insurance that is purchased as a supplement and not as a
substitute for an eligible health benefit plan. Eligible health
benefit plan does not include coverage or benefits arising out of
the worker's disability compensation act of 1969, 1969 PA 317, MCL
418.101 to 418.941, another worker's compensation law or similar
law, automobile medical payment insurance, insurance under which
benefits are payable with or without regard to fault, coverage
under a plan through medicare, and coverage issued under 10 USC
1071 to 1110, and any coverage issued as a supplement to that
coverage.
(c) "Health care corporation" means a health care corporation
operating pursuant to the nonprofit health care corporation reform
act of 1980, 1980 PA 350, MCL 550.1101 to 550.1704.
(d) "Health insurer" means a health insurer with a certificate
of authority under the insurance code of 1956, 1956 PA 218, MCL
500.100 to 500.8302.
(e) "Health maintenance organization" means a health
maintenance organization with a license or certificate of authority
under the insurance code of 1956, 1956 PA 218, MCL 500.100 to
500.8302.
(f) "Medicare" means the federal medicare program established
under title XVIII of the social security act, 42 USC 1395 to
1395hhh.
(g) "Michigan economic development corporation" means the
public body corporate created under section 28 of article VII of
the state constitution of 1963 and the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual
interlocal agreement effective April 5, 1999, as amended, between
local participating economic development corporations formed under
the economic development corporations act, 1974 PA 338, MCL
125.1601 to 125.1636, and the Michigan strategic fund.
(h) "New business" means a business that meets all of the
following criteria as certified annually by the Michigan economic
development corporation:
(i) Has fewer than 25 full-time equivalent employees.
(ii) Has sales of less than $1,000,000.00 in the tax year for
which the credit under this section is claimed.
(iii) Is not publicly traded.
(iv) Met 1 of the following criteria during 1 of the initial 2
consecutive tax years in which the qualified start-up business had
no business income:
(A) During the immediately preceding 7 years was in 1 of the
first 2 years of contribution liability under section 19 of the
Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.19.
(B) During the immediately preceding 7 years would have been
in 1 of the first 2 years of contribution liability under section
19 of the Michigan employment security act, 1936 (Ex Sess) PA 1,
MCL 421.19, if the qualified start-up business had employees and
was liable under the Michigan employment security act, 1936 (Ex
Sess) PA 1, MCL 421.1 to 421.75.
(C) During the immediately preceding 7 years would have been
in 1 of the first 2 years of contribution liability under section
19 of the Michigan employment security act, 1936 (Ex Sess) PA 1,
MCL 421.19, if the qualified start-up business had not assumed
successor liability under section 15(g) of the Michigan employment
security act, 1936 (Ex Sess) PA 1, MCL 421.15.