HOUSE BILL No. 5598

 

January 24, 2006, Introduced by Reps. Gonzales, Vagnozzi, Zelenko, Lemmons, III, Angerer, Polidori and Spade and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.532) by adding section 275.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 275. (1) For tax years that begin after December 31,

 

2005, a taxpayer that purchases an alternative fueled vehicle may

 

claim a credit equal to $500.00 in the tax year in which the

 

alternative fueled vehicle was purchased.

 

     (2) If the amount of the credit allowed under this section

 

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

 

portion of the credit that exceeds the tax liability shall be

 

refunded.

 

     (3) As used in this section:

 

     (a) "Alternative fueled vehicle" means a passenger vehicle


 

that is an electric vehicle or is powered exclusively by hydrogen

 

fuel.

 

     (b) "Electric vehicle" means a passenger vehicle that draws

 

propulsion energy only from an on-board source of electrical

 

energy.

 

     (c) "Passenger vehicle" means a motor vehicle with motive

 

power designed to carry 10 passengers or less, or a van having a

 

GVWR of 5,000 pounds or less, but not including a multipurpose

 

passenger motor vehicle, motorcycle, or truck.