October 25, 2007, Introduced by Reps. Moolenaar, Walker, Rocca, Mayes, Hune, Rick Jones, Moore, Calley, Shaffer, Accavitti, Marleau, Stakoe, Agema, Caul, Opsommer, Horn, Nofs, Pearce, Brown, Booher, Gaffney, Pastor, Farrah and Coulouris 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 after December 31, 2007
and before January 1, 2018, a taxpayer that owns a small wind
turbine located in this state and uses that small wind turbine to
generate energy may claim a credit against the tax imposed by this
act equal to $0.015 per kilowatt hour generated in the tax year.
(2) A taxpayer shall apply to the energy office of the
department of labor and economic growth for approval of a credit
under this section. The director of the department of labor and
economic growth or his or her designee is authorized to approve
applications under this subsection. An application shall be
approved or denied not more than 45 days after receipt of the
application. If the application is not approved or denied 45 days
after the application is received by the department of labor and
economic growth, the application is considered approved for the
credit amount stated in the application. The total of all credits
under this section shall not exceed $3,000,000.00 per calendar
year. The total of all credits for any 1 taxpayer under this
subsection shall not exceed $750,000.00 for a tax year. If the
department of labor and economic growth approves an application
under this subsection, the director of the department of labor and
economic growth or his or her designee shall issue a certificate to
the taxpayer that states that the taxpayer is eligible to claim a
credit under this section and the amount of the credit. If an
application is denied under this section, a taxpayer is not
prohibited from subsequently applying under this section for a
credit. A taxpayer shall attach the certificate received under this
subsection to the return filed under this act on which a credit
allowed under this section is claimed. A taxpayer shall not claim a
credit in excess of the amount approved under this subsection. The
energy office of the department of labor and economic growth shall
approve applications in the order in which they are received.
Applications for tax years that begin during 2008 shall be accepted
on and after January 1, 2008.
(3) A taxpayer that is allowed a credit under this section may
assign all or a portion of the credit. A credit assignment under
this subsection is irrevocable and shall be made in the tax year in
which kilowatt hours on which the credit is based are generated. A
taxpayer may claim a portion of the credit allowed under this
section and assign a portion of the remaining credit amount. If the
taxpayer both claims and assigns portions of the credit, the
taxpayer shall claim the portion it claims in the tax year in which
the kilowatt hours are generated on which the credit under this
section is based. An assignee may subsequently assign a credit or
any portion of a credit assigned under this subsection. The credit
assignment under this subsection shall be made on a form prescribed
by the department. The taxpayer shall send a copy of the completed
assignment form to the department in the tax year in which the
assignment is made. The assignee shall attach a copy of the
completed assignment form to its annual return required under this
act for the tax year in which the assignment is made and the
assignee first claims a credit, which shall be the same tax year.
(4) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed under this
section exceed the tax liability of the taxpayer for the tax year,
the excess shall not be refunded, but may be carried forward as an
offset to the tax liability in the subsequent tax year.
(5) As used in this section, "small wind turbine" means an
integrated unit consisting of a wind turbine composed of a rotor,
an electrical generator, a control system, an inverter, or other
power conditioning unit, and a tower, which uses moving air to
produce power with a maximum electrical generating capacity of 5
megawatts.