November 8, 2007, Introduced by Reps. Nofs, Opsommer, Horn, Moolenaar, Booher, Palsrok, Hansen, Knollenberg and Huizenga and referred to the Committee on Energy and Technology.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 253.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 253. (1) For tax years that begin after December 31,
2007, if a taxpayer purchases and installs residential energy
efficient property to supply all or part of the energy required for
the taxpayer's principal residence or for residential rental
property owned by the taxpayer and if the taxpayer participates in
a net metering program offered by an electric utility, the taxpayer
may claim a credit against the tax imposed under this act equal to
20% of the total cost of expenditures incurred in purchasing the
necessary equipment, installing the residential energy efficient
property, and any other expenses incurred during the tax year,
including any utility charges incurred to participate in the net
metering program. The credit allowed under this subsection shall
not exceed $500.00. A taxpayer who rents or leases residential
rental property may claim a similar credit computed under this
section for the purchase and installation of residential energy
efficient property and participation in a net metering program, as
long as the owner or lessor does not claim a credit under this
section based on the same costs.
(2) The department may require reasonable proof in support of
the costs and expenses claimed under this section.
(3) If the total credits allowed under this section for the
tax year exceed the tax liability of the taxpayer for the tax year,
that portion of the credit that exceeds the tax liability shall not
be refunded but may be carried forward for 1 year only.
(4) As used in this section:
(a) "Active solar system" means a system of equipment capable
of collecting and converting incident solar radiation into thermal,
mechanical, or electrical energy, and transferring these forms of
energy by a separate apparatus to storage or to the point of use.
Active solar system includes water heating, space heating or
cooling, and electrical or mechanical energy generation.
(b) "Biomass" means agricultural crops and organic waste,
waste to energy, and landfill gas. Biomass fueled systems shall be
allowed to blend up to 25% fossil fuel as needed to ensure safe,
environmentally sound system operation.
(c) "Biomass system" means any system of apparatus and
equipment capable of converting organic plant, wood, or waste
products into electrical and thermal energy and transferring these
forms of energy by a separate apparatus to the point of use or
storage.
(d) "Electric utility" means a person, partnership,
corporation, association, or other legal entity whose transmission
or distribution of electricity the Michigan public service
commission regulates under 1909 PA 106, MCL 460.551 to 460.559, or
1939 PA 3, MCL 460.1 to 460.10cc. Electric utility also includes a
municipal utility.
(e) "Eligible electric generator" means a system for the
generation of electricity that is fueled by a renewable fuel or a
fuel cell. An eligible electric generator shall not exceed 150
kilowatts unless approved by the commission in consultation with
potentially affected electric utilities.
(f) "Hydroenergy system" means a system of apparatus and
equipment capable of intercepting and converting kinetic water
energy into electrical or mechanical energy and transferring this
form of energy by separate apparatus to the point of use or
storage.
(g) "Passive solar system" means a direct thermal system that
utilizes the structure of a building and its operable components to
provide for collection, storage, and distribution of heating or
cooling during the appropriate times of the year by utilizing the
climate resources available at the site. Passive solar system
includes those portions and components of a building that are
expressly designed and required for the collection, storage, and
distribution of solar energy.
(h) "Principal residence" means that term as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
(i) "Renewable fuel" means solar, wind, or biomass.
(j) "Residential energy efficient property" means any active
solar, passive solar, wind, or hydroenergy system used to supply
energy to or for a principal residence or residential rental
property unit.
(k) "Residential rental property" means that portion of real
property not occupied by an owner of that real property that is
classified as residential real property under section 34c of the
general property tax act, 1893 PA 206, MCL 211.34c, is a multiple-
unit dwelling, or is a dwelling unit in a multiple-purpose
structure, used for residential purposes.
(l) "Wind system" means a system of apparatus and equipment
capable of intercepting and converting wind energy into mechanical
or electrical energy and transferring these forms of energy by a
separate apparatus to the point of use or storage.