May 27, 2008, Introduced by Senators BASHAM, JACOBS, OLSHOVE, ANDERSON and GLEASON and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 262.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 262. (1) For tax years that begin after December 31,
2007, a taxpayer, other than an estate or a trust, may claim a
credit against the tax imposed by this act for the taxable year in
the amount as provided in this section for the purchase and
installation, but excluding finance charges, of a solar, wind, or
water energy conversion device in the taxpayer's domicile located
in this state, or a building that is owned by the taxpayer and
rented or leased for the purpose of providing a domicile and
located within this state, or both the taxpayer's domicile located
in this state and such a building. A subsequent purchaser may claim
the credit if the person who installed the solar, wind, or water
energy conversion device does not claim the credit. Only 1 person
may claim the credit for each installation except as allowed in
subsection (6). The credit shall be claimed for the tax year in
which the installation of the device was completed.
(2) The amount of the credit allowed by this section for the
cost of purchase and installation, but excluding finance charges,
of a solar, wind, or water energy conversion device in the
taxpayer's domicile, or a building that is owned by the taxpayer
and rented or leased for the purpose of providing a domicile, that
is a single family dwelling and that is located within this state
is 30% of the first $2,000.00 of cost and 15% of the next $3,000.00
of cost.
(3) The amount of the credit allowed by this section for the
cost of purchase and installation, but excluding finance charges,
of a solar, wind, or water energy conversion device in the
taxpayer's domicile, or a building that is owned by the taxpayer
and rented or leased for the purpose of providing a domicile, that
is other than a single family dwelling and that is located within
this state is 30% of the first $2,000.00 of cost and 15% of the
next $7,000.00 of cost.
(4) A taxpayer who owns and resides in a condominium located
within this state and who installs a solar, wind, or water energy
conversion device for the condominium is eligible for the credit
provided by this section in proportion to the number of households
served by the device.
(5) Energy conservation measures applied in conjunction with a
solar, wind, or water energy conversion device to increase the
energy efficiency of the device shall be considered part of the
device and are eligible for the tax credit. These measures shall be
defined in the rules promulgated by the department of labor and
economic growth pursuant to subsection (8). A wood-burning
apparatus, excluding a fireplace, installed in conjunction with a
solar, wind, or water energy conversion system, to decrease the
nonrenewable back-up energy requirements of the building in which
the apparatus is installed, shall be considered part of the device
and is eligible for the tax credit. Swimming pool heating devices
are eligible for the credit only if 25% or more of the system's
heating capacity is used for residential purposes. Energy
conservation measures that are eligible for the tax credit when
applied in conjunction with a solar, wind, or water energy
conversion device shall be defined by rules promulgated by the
department of commerce as part of the eligibility criteria.
(6) In the case of a husband or wife who files a separate
return, the credit may be taken by either or equally divided
between them.
(7) If the credit allowed under this section exceeds the tax
liability for the taxable year, that portion of the credit that
exceeds the tax liability shall be refunded.
(8) Before July 1, 2008, the department of labor and economic
growth shall promulgate rules pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to
implement this section and to establish the performance and quality
standards and other standards for energy conservation measures and
solar, wind, or water energy conversion devices that are eligible
for the tax credit under this section. A taxpayer shall file for
certification of a device with the department of labor and economic
growth on a form prescribed by the department not later than 1 year
following the date on which the installation of the device was
completed. The department of labor and economic growth may grant an
extension for filing upon a showing of good cause. On a form
provided by the department, the department of labor and economic
growth shall certify to the taxpayer that the solar, wind, or water
energy conversion device qualifies under this section and shall
specify the amount of the credit to which the taxpayer is entitled.
A copy of the certificate shall be attached to the return filed
under this act. The department of treasury may promulgate rules
necessary to carry out the purposes of this section.
(9) A solar, wind, or water energy conversion device that
qualifies for a credit provided under federal law and that was
purchased and installed before promulgation of rules required by
this section is eligible for the appropriate tax credit provided by
this section.
(10) Solar equipment testing, if required by the rules, shall
be carried out at a federal, state, or independent testing
laboratory and shall be done pursuant to applicable federal and
state guidelines.
(11) As used in this section:
(a) "Solar, wind, or water energy conversion device" means a
mechanism or system or series of mechanisms or systems designed
primarily to collect, convert, transfer, or store for future use
solar, wind, or water energy for the purposes of heating, cooling,
or electric supply, but not those parts of a heating, cooling, or
electric supply system that would be required regardless of the
energy source being utilized.
(b) "Water energy conversion device" includes only those
devices that utilize ground water heat pumps or low head
hydroenergy conversion systems.