HOUSE BILL No. 5520

 

December 14, 2005, Introduced by Reps. Vander Veen, Taub, Newell, Sak, Brandenburg, Zelenko, Sheen, Stahl, Emmons, David Law, LaJoy, Gaffney, Robertson, Condino and Walker and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.532) by adding section 275.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 275. (1) For tax years that begin after December 31,

 

2004, a taxpayer who is a physician or dentist who provides medical

 

or dental services without cost to patients may claim a credit

 

against the tax imposed by this act equal to 50% of the cost of

 

donated services not to exceed $5,000.00 per tax year.

 

     (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 be

 

refunded.

 

     (3) As used in this section:

 


     (a) "Cost of donated services" means the difference between

 

the amount that the physician or dentist would regularly charge a

 

patient for a specific medical or dental service or procedure and

 

the amount that the medicaid program would pay for that service or

 

procedure if that service or procedure would have been paid for by

 

the medicaid program had the patient been eligible for the medicaid

 

program.

 

     (b) "Dentist" means that term as defined in section 16601 of

 

the public health code, 1978 PA 368, MCL 333.16601.

 

     (c) "Medicaid program" means a program for medical assistance

 

established under title XIX of the social security act, chapter

 

531, 49 Stat. 620, 42 USC 1396 to 1396f, 1396g-1 to 1396r-6, and

 

1396r-8 to 1396v.

 

     (d) "Physician" means that term as defined in section

 

17001(1)(c) or 17501(1)(b) of the public health code, 1978 PA 368,

 

MCL 333.17001 and 333.17501.