HB-5126, As Passed House, February 4, 2004                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 5126                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1975 PA 228, entitled                                             

                                                                                

    "Single business tax act,"                                                  

                                                                                

    (MCL 208.1 to 208.145) by adding section 37f.                               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 37f.  (1) For tax years that begin after December 31,                  

                                                                                

2   2004, a taxpayer may claim a credit against the tax imposed by              

                                                                                

3   this act equal to 25% of the cost of lead abatement to a                    

                                                                                

4   residential dwelling in this state owned by the taxpayer that is            

                                                                                

5   not paid for by or reimbursed from any state or federal funds.              

                                                                                

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

                                                                                

7   year and any unused carryforward of the credit allowed under this           

                                                                                

8   section exceed the tax liability of the taxpayer for the tax                

                                                                                

9   year, the excess shall not be refunded but may be carried forward           

                                                                                

10  as an offset to the tax liability in subsequent tax years for 10            

                                                                                

11  tax years or until the excess credit is used up, whichever occurs           

                                                                                


                                                                                

1   first.                                                                      

                                                                                

2       (3) A taxpayer that claims a credit under this section shall                

                                                                                

3   retain all of the following records to support that claim and               

                                                                                

4   make all documentation available to the department upon request:            

                                                                                

5       (a) Receipts for all costs used as a basis for the credit.                  

                                                                                

6       (b) A lead hazard risk assessment performed by a certified                  

                                                                                

7   risk assessor that demonstrates the existence of a lead hazard to           

                                                                                

8   the taxpayer's homestead or the residential rental property owned           

                                                                                

9   by the taxpayer.                                                            

                                                                                

10      (c) A lead hazard risk assessment performed by a certified                  

                                                                                

11  risk assessor after the abatement by the taxpayer that                      

                                                                                

12  demonstrates that the lead hazard to the taxpayer's homestead or            

                                                                                

13  residential rental property has been remediated or abated.                  

                                                                                

14      (4) As used in this section:                                                

                                                                                

15      (a) "Lead abatement" means, except as otherwise provided in                 

                                                                                

16  this subsection, a measure or set of measures designed to                   

                                                                                

17  permanently eliminate lead-based paint hazards by the removal of            

                                                                                

18  lead-based paint and lead-contaminated dust, the permanent                  

                                                                                

19  enclosure or encapsulation of lead-based paint, the replacement             

                                                                                

20  of lead-painted surfaces or fixtures, the removal or covering of            

                                                                                

21  lead-contaminated soil, and all preparation, cleanup, disposal,             

                                                                                

22  and postabatement clearance testing activities associated with              

                                                                                

23  these measures.  Lead abatement does not include either of the              

                                                                                

24  following:                                                                  

                                                                                

25                                                                               (i) Renovation, remodeling, landscaping, or other activity,                         

                                                                                

26  if the activity is not designed to permanently eliminate                    

                                                                                

27  lead-based paint hazards, but is instead designed to repair,                


                                                                                

1   restore, or remodel a structure even though the activity may                

                                                                                

2   incidentally result in a reduction or elimination of a lead-based           

                                                                                

3   paint hazard.                                                               

                                                                                

4       (ii) An interim control, operation, or maintenance activity,                 

                                                                                

5   or other measure or activity designed to temporarily, but not               

                                                                                

6   permanently, reduce a lead-based paint hazard.                              

                                                                                

7       (b) "Lead-based paint" means paint or other surface coatings                

                                                                                

8   that contain lead equal to or in excess of 1.0 milligram per                

                                                                                

9   square centimeter or more than 0.5% by weight.                              

                                                                                

10      (c) "Lead-contaminated dust" means surface dust in a                        

                                                                                

11  residential dwelling or child occupied facility that contains an            

                                                                                

12  area or mass concentration of lead at or in excess of levels                

                                                                                

13  identified by the environmental protection agency pursuant to               

                                                                                

14  section 403 of title IV of the toxic substance control act,                 

                                                                                

15  Public Law 94-469, 15 USC 2683, or as otherwise defined by rule.            

                                                                                

16      (d) "Multifamily dwelling" means a structure that contains                  

                                                                                

17  more than 1 separate residential dwelling unit and that is used             

                                                                                

18  or occupied, or intended to be used or occupied, in whole or in             

                                                                                

19  part, as the home or residence of 1 or more persons.                        

                                                                                

20      (e) "Residential dwelling" means a detached single family                   

                                                                                

21  dwelling unit, a single family dwelling unit in a structure that            

                                                                                

22  contains more than 1 separate residential dwelling unit used or             

                                                                                

23  occupied, in whole or in part, as the home or residence of 1 or             

                                                                                

24  more persons, or a multifamily dwelling.