HOUSE BILL No. 6475


     November 7, 2002, Introduced by Rep. Kolb 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 270.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC. 270.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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

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        THIS ACT EQUAL TO THE COST PAID IN THE TAX YEAR TO INCREASE THE

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        ENERGY EFFICIENCY OF HIS OR HER PRIMARY RESIDENCE IN 1 OR MORE OF

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        THE FOLLOWING WAYS, OR $2,500.00 PER TAX YEAR, WHICHEVER IS

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        LESS:

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             (A) PURCHASE AND INSTALL A HEATING OR COOLING SYSTEM THAT IS

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        AT LEAST 30% OR MORE ENERGY EFFICIENT THAN A STANDARD HEATING OR

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        COOLING SYSTEM.

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             (B) PURCHASE AND INSTALL A CLOTHES WASHER OR DRYER,

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        REFRIGERATOR, FREEZER, AIR CONDITIONER, OR OTHER MAJOR APPLIANCE


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        THAT IS AT LEAST 30% OR MORE ENERGY EFFICIENT THAN A STANDARD

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        APPLIANCE.

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             (C) INSTALL INSULATION THAT INCREASES THE ENERGY EFFICIENCY

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        OF THE PRIMARY RESIDENCE BY 30% OR MORE.

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             (D) PURCHASE AND INSTALL AN ALTERNATIVE ENERGY SYSTEM IN THE

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        PRIMARY RESIDENCE.

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             (2) THE DEPARTMENT, IN CONJUNCTION WITH THE DEPARTMENT OF

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        ENVIRONMENTAL QUALITY, SHALL DEVELOP ENERGY EFFICIENCY GUIDELINES

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        FOR TAXPAYERS TO USE IN CALCULATING THE CREDIT UNDER THIS

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        SECTION.

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             (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION

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        EXCEEDS THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT

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        PORTION OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE

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        REFUNDED.

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             (4) AS USED IN THIS SECTION:

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             (A) "ALTERNATIVE ENERGY SYSTEM" MEANS THAT TERM AS DEFINED

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        IN SECTION 2 OF THE MICHIGAN NEXT ENERGY AUTHORITY ACT, 2002

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        PA 593, MCL 207.822.

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             (B) "PRIMARY RESIDENCE" MEANS THE RESIDENCE FOR WHICH THE

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        TAXPAYER CLAIMS A HOMESTEAD EXEMPTION UNDER SECTION 7CC OF THE

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        GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.7CC.















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