HOUSE BILL No. 6406


     September 24, 2002, Introduced by Reps. Daniels and Kolb and referred to the Committee on Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   (MCL 205.51 to 205.78) by adding section 4h.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC. 4H.  (1) A PERSON SUBJECT TO THE TAX UNDER THIS ACT MAY

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        EXCLUDE FROM THE GROSS PROCEEDS USED FOR THE COMPUTATION OF THE

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        TAX ANY SALES OF TANGIBLE PROPERTY FOR A SOLAR, WIND, OR WATER

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        ENERGY CONVERSION DEVICE USED TO SUPPLY CONVERTED SOLAR, WIND, OR

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        WATER ENERGY FOR HEATING, COOLING, OR ELECTRIFYING AN EXISTING OR

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        NEW RESIDENTIAL OR COMMERCIAL BUILDING.

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             (2) AS USED IN THIS SECTION:

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             (A) "SOLAR, WIND, OR WATER ENERGY CONVERSION DEVICE" MEANS A

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        MECHANISM OR SERIES OF MECHANISMS DESIGNED PRIMARILY TO COLLECT,

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        CONVERT, TRANSFER, OR STORE FOR FUTURE USE SOLAR, WIND, OR WATER

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        ENERGY FOR THE PURPOSES OF HEATING, COOLING, OR ELECTRIC SUPPLY


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        BUT NOT THOSE PARTS OF A HEATING, COOLING, OR ELECTRIC SUPPLY

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        SYSTEM THAT WOULD BE REQUIRED REGARDLESS OF THE ENERGY SOURCE

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        BEING UTILIZED.

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             (B) "WATER ENERGY CONVERSION DEVICE" INCLUDES ONLY THOSE

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        DEVICES THAT UTILIZE THE TEMPERATURE DIFFERENCES BETWEEN LOW AND

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        HIGH WATER LEVELS.

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             (3) FOR THE PURPOSES OF THIS SECTION, "COMMERCIAL BUILDING"

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        EXCLUDES ANY BUILDING OWNED BY A CORPORATION THAT HAS AS ANY PART

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        OF ITS BUSINESS THE DESIGNING OR BUILDING OF SOLAR, WIND, OR

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        WATER ENERGY CONVERSION DEVICES FOR RESALE.




































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