February 12, 2013, Introduced by Rep. Ananich 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 206.713) by adding section 675.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 675. (1) A taxpayer that reequips, expands, or
establishes a manufacturing facility for the production of a
qualifying biobased product in this state may claim a credit
against the tax imposed by this part equal to 30% of the cost of
the taxpayer's qualified investment paid or accrued by the taxpayer
during the tax year with respect to that qualifying project.
(2) The total amount of the credits allowed under this section
shall not exceed $12,000,000.00.
(3) If the amount of the credit allowed under this section
exceeds the tax liability of the taxpayer for the tax year, that
portion that exceeds the tax liability of the taxpayer shall not be
refunded but may be carried forward to offset tax liability in
subsequent tax years for 10 years or until used up, whichever
occurs first.
(4) As used in this section:
(a) "Biobased content" means, with respect to any qualifying
biobased product, the amount of carbon from biological sources
contained in such product as determined by the testing of product
samples using the generally accepted methodology of the American
society of testing and materials D6866.
(b) "Eligible property" means any tangible personal property
or other tangible property, but only if the other tangible property
is used as an integral part of the qualifying project, and the
property is necessary for the reequipment, expansion, or
establishment of a manufacturing facility for the production of a
qualifying biobased product and subject to depreciation.
(c) "Qualified investment" means the basis of eligible
property placed in service by the taxpayer during the tax year
which is part of the qualifying project.
(d) "Qualifying biobased product" means any product, including
a product that may be used as a petrochemical alternative, the
biobased content of which is not less than 25%. A qualifying
biobased product does not include any of the following:
(i) Any product which is sold or used as food, feed, fuel, or
an ingredient thereof.
(ii) Any product which is primarily composed of lignocellulosic
matter and which is sold or used as a paper or wood product, unless
such product is manufactured from either of the following:
(A) Wood fiber harvested from lands certified as well managed
by any forest management certification program approved by the
federal government.
(B) Wood fiber harvested from federal public lands, including
national forest system and bureau of land management lands, in
accordance with an approved land management project and a valid
timber sale or stewardship contract.
(e) "Qualifying project" means a project to reequip, expand,
or establish a manufacturing facility for the production of a
qualifying biobased product in this state.