August 21, 2007, Introduced by Reps. Byrum, Valentine and Mayes and referred to the Committee on Agriculture.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 278.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 278. (1) For tax years that begin after December 31,
2007, a taxpayer may claim a credit against the tax imposed by this
act equal to 25% of the total amount paid to purchase and install a
biomass burning unit.
(2) The taxpayer shall claim 20% of the amount of the credit
allowed under this section for the purchase and installation of
each biomass burning unit in the tax year of the purchase and
installation and 20% of the amount of the credit allowed under this
section for the purchase and installation of each biomass burning
unit in each of the subsequent 4 tax years.
(3) 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.
(4) The credit allowed under this section shall be claimed on
a form developed by the department that is a form separate from the
annual return required under this act and shall be filed with the
taxpayer's annual return each year that a credit under this section
is claimed.
(5) The taxpayer shall attach proof of the purchase and
installation to the form under subsection (4) in the year that the
taxpayer purchases and installs the biomass burning unit.
(6) The taxpayer shall attach a receipt for biomass fuel
purchased in the tax year to the annual return on which a credit
under this section is claimed for each of the 4 years after the
year in which the taxpayer purchased and installed the biomass
burning unit.
(7) As used in this section:
(a) "Biomass burning unit" means a stove, furnace, or boiler
designed specifically to utilize biomass fuel and that has a
capacity of at least 30,000 BTUs. Biomass burning unit does not
include a conventional wood burning stove.
(b) "Biomass fuel" means any form of fuel, including pellets,
made from agricultural or forest products waste, including, but not
limited to, corn, rye, wheat, barley, cherry pits, wood, and
switchgrass.