SENATE BILL NO. 1248

December 03, 2020, Introduced by Senator HOLLIER and referred to the Committee on Finance.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.713) by adding section 276.

the people of the state of michigan enact:

Sec. 276. (1) For tax years that begin after December 31, 2019, a taxpayer who is an account holder may claim a credit against the tax imposed by this part equal to 75% of the contributions, less any withdrawals for which a penalty is withheld under section 9 of the family savings account program act, made in the tax year by the taxpayer to a family savings account pursuant to the family savings account program act.

(2) If the amount of the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall not be refunded.

(3) As used in this section, "account holder" and "family savings account" mean those terms as defined in the family savings account program act.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1247 of the 100th Legislature is enacted into law.