SB-1048, As Passed Senate, June 27, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1048

     A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.532) by adding section 253.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 253. (1) For the 2008 tax year and each tax year after

2008, a taxpayer that purchases and installs certain qualified home

improvements for his or her principal residence during the tax year

may claim a credit against the tax imposed by this act equal to 10%

of the amount paid by the taxpayer in the tax year for the purchase

and installation of each qualified home improvement or $100.00, or

for a husband and wife filing a joint return as provided in section

311, $200.00 for each qualified home improvement purchased and

installed during the tax year, whichever is less. To claim the

credit allowed under this subsection, the taxpayer shall, on a form

or in a format as prescribed by the department, provide

verification of the amount paid for the purchase and installation

of the qualified home improvement along with documentation of its

compliance with the energy star energy efficiency guidelines and

attach that verification to his or her annual return under this act

for the tax year in which the credit under this section is claimed.

If the credit allowed under this subsection exceeds the tax

liability of the taxpayer for the tax year, that portion of the

credit that exceeds the tax liability shall be refunded.

     (2) For the 2008 tax year and each tax year after 2008, a

taxpayer may claim a credit against the tax imposed by this act

equal to the additional charges incurred by the taxpayer during the

tax year as a result of the charges imposed by the taxpayer's

electric utility provider to recover the incremental costs of

compliance with the integrated renewable energy portfolio standard

under section 27 of the clean, renewable, and efficient energy act.

Notwithstanding any other provision of law, on the energy billing

statement that is sent to the taxpayer in January of each year, the

electric utility provider that imposes recovery charges shall

include a statement detailing the total amount of recovery charges

imposed and paid by the taxpayer during the year and informing the

taxpayer that he or she may claim a credit against his or her

income tax liability based on those charges. If the credit allowed

under this subsection 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:

     (a) "Electric utility" means that term as defined under

section 10g of 1939 PA 3, MCL 460.10g.

     (b) "Qualified home improvement" means any qualified energy

star product intended for residential or noncommercial use that

meets or exceeds the applicable energy star energy efficiency

guidelines developed by the United States environmental protection

agency and the United States department of energy, including, but

not limited to, windows, doors, insulation, high efficiency heating

and cooling equipment, and any appliances such as dishwashers,

clothes washers, and refrigerators.