ALT. FUEL VEHICLES: TAX CREDIT S.B. 557 (S-4): FLOOR ANALYSIS
Senate Bill 557 (Substitute S-4 as reported) Sponsor: Senator Mat J. Dunaskiss Committee: Technology and Energy
The bill would amend the General Sales Tax Act to provide that, for sales made after December 31, 1996, and before January 1, 2002, a person subject to the sales tax could exclude from gross proceeds used for the computation of the tax the amount of gross proceeds from the sale of a motor vehicle, including a vehicle purchased for lease to another, that used an alternative fuel as its primary fuel source, equal to the difference between the cost of the alternative-fueled vehicle and the cost that the same vehicle would have had with a traditional fuel source.
“Alternative fuel” would mean methanol, denatured ethanol, and other alcohols; mixtures containing not less than 70% by volume of methanol, denatured ethanol, and other alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-derived liquid fuels; fuels, other than alcohol, derived from biological materials; and electricity, including electricity from solar energy; and any other fuel designated an alternative fuel by the Secretary of Energy under the provisions of Title III of the Federal Energy Policy Act.
Proposed MCL 205.54p Legislative Analyst: P. Affholter
It is estimated that this bill would reduce sales tax revenue by $0.2 million a year.
Date Completed: 6-24-96 Fiscal Analyst: J. Wortley
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.