HOUSE BILL No. 4736

 

May 5, 2005, Introduced by Reps. Hoogendyk, Stakoe, Huizenga, Robertson, Gosselin, Sheen and Vander Veen and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 267 (MCL 206.267), as added by 2000 PA 394; and

 

to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 267. (1) For tax years that begin after December 31,

 

2000, an eligible taxpayer may claim a credit against the tax

 

imposed by this act equal to the  amount determined under section

 

268.  taxpayer's qualified adoption expenses in excess of the

 

amount of credit for qualified adoption expenses the taxpayer

 

claimed under section 23 of the internal revenue code or either of

 

the following amounts per child, whichever is less:

 

     (a) $1,200.00.

 


     (b) For tax years that begin after December 31, 2004, if the

 

taxpayer adopts a child who was subject to the jurisdiction of the

 

court or was a ward of the state before the adoption became final,

 

$2,400.00.

 

     (2) If the credit allowed under this section for the tax year

 

exceeds the taxpayer's tax liability for the tax year, that portion

 

that exceeds the tax liability for the tax year shall be refunded.

 

     (3) The amounts under subsection (1) shall be adjusted

 

annually by the percentage increase in the United States consumer

 

price index for the immediately preceding calendar year.

 

     (4)   (3)  As used in this section:  , "eligible

 

     (a) "Eligible taxpayer" means a taxpayer that claimed a credit

 

under section 23 of the internal revenue code for the same tax year

 

that the taxpayer is claiming a credit under this section.

 

     (b) "Qualified adoption expenses" means adoption expenses that

 

are eligible to be used by an eligible taxpayer to claim a credit

 

against the taxpayer's federal tax liability under section 23 of

 

the internal revenue code for the same tax year that the taxpayer

 

is claiming a credit under this section.

 

     (c) "United States consumer price index" means the United

 

States consumer price index for all urban consumers as defined and

 

reported by the United States department of labor, bureau of labor

 

statistics, and as certified by the state treasurer.

 

     Enacting section 1.  Section 268 of the income tax act of

 

1967, 1967 PA 281, MCL 206.268, is repealed effective January 1,

 

2005.