HOUSE BILL No. 5145

 

August 29, 2007, Introduced by Reps. Brown, Ball, Polidori, Kathleen Law, Knollenberg, Leland, Espinoza, Mayes, Byrum, Constan and Melton and referred to the Committee on Energy and Technology.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

(MCL 208.1101 to 208.1601) by adding section 451.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 451. (1) For tax years that begin on or after January 1,

 

2008, a qualified taxpayer that utilizes innovative technologies

 

may claim a credit against the tax imposed by this act equal to 10%

 

of the amount expended to implement the new innovative

 

technologies, not to exceed $250,000.00 per tax year per each

 

taxpayer.

 

     (2) If the credit allowed under this section for the tax year

 

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

 

excess shall not be refunded.


 

     (3) A taxpayer shall not claim a credit under this section

 

unless the taxpayer attaches receipts or other written

 

documentation approved by the department that is evidence of the

 

amount expended during the tax year to the annual return for which

 

the credit under this section is claimed.

 

     (4) As used in this section:

 

     (a) "Bioenergy" means heat or electricity produced from the

 

thermal, mechanical, or biological processing of biomass. Bioenergy

 

does not include heat or electricity produced from the direct

 

combustion of biomass.

 

     (b) "Biofuels" means ethanol, biodiesel, butanol, or other

 

liquid fuels produced from biomass.

 

     (c) "Biomass" means any organic matter that is available on a

 

renewable or recurring basis, including, but not limited to,

 

agricultural crops, certain trees and grasses, plants, wood

 

residues, forest industry residues, food processing wastes,

 

municipal solid wastes, and agricultural residues and wastes such

 

as cornstalks, corncobs, and manure.

 

     (d) "Bioproducts" means industrial, commercial, or consumer

 

products made with, or composed in whole or in significant part of,

 

fibers, solid, liquid, or gaseous chemicals, proteins,

 

carbohydrates, lipids, minerals, or any other substance produced

 

from biomass.

 

     (e) "Ethanol" means an alcohol with a molecular formula of

 

CH3CH2OH.

 

     (f) "Ethanol plant" means a facility that produces ethanol

 

from corn kernels for use as fuel or fuel additive.


 

     (g) "Innovative technologies" means technologies that reduce

 

the costs of converting corn into ethanol, that reduce energy

 

consumption used during the conversion of corn into ethanol, that

 

enable the co-processing of corn and other biomass into ethanol or

 

other biofuels, that increase the yield of ethanol, or that

 

facilitate the production of other useful biofuels, bioenergy, and

 

bioproducts.

 

     (h) "Qualified taxpayer" means a taxpayer that owns and

 

operates a corn processing ethanol plant on January 1, 2008.

 

     Enacting section 1. This amendatory act takes effect January

 

1, 2008.