March 13, 2008, Introduced by Reps. Moolenaar, Horn, Mayes, Espinoza, Coulouris, Caul, Opsommer, Moore, Emmons, Nofs, Corriveau and Walker and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 430.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 430. (1) For tax years that begin on or after January 1,
2009, a taxpayer whose primary business activity is engaging in the
research, development, or manufacturing of photovoltaic energy,
photovoltaic systems, and other photovoltaic technology may claim a
credit against the tax imposed by this act equal to the greater of
either of the following:
(a) 50% of the amounts realized from investments made by the
taxpayer on and after January 1, 2009 in the research, development,
or manufacturing of photovoltaic energy, photovoltaic systems, and
other photovoltaic technology in this state during the tax year.
(b) 50% of the taxpayer's research, development, and
manufacturing expenses incurred in this state during the tax year.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion that
exceeds the tax liability is refundable.
(3) A taxpayer that claims a credit under this section is not
prohibited from claiming a credit under section 405. However, the
taxpayer shall not claim a credit under this section and section
405 based on the same research and development expenses or
investments.
(4) As used in this section:
(a) "Photovoltaic cells" mean an integrated device consisting
of layers of semiconductor materials and electric contracts capable
of converting incident light directly into electricity.
(b) "Photovoltaic energy" means solar energy.
(c) "Photovoltaic modules" mean an assembly of interconnected
photovoltaic cells.
(d) "Photovoltaic systems" mean solar energy devices composed
of 1 or more photovoltaic cells or photovoltaic modules, and
inverter or other power conditioning unit or photovoltaic
technology designed to deliver power of a selected current and
voltage, wires, and other electrical connectors in order to
generate electricity, heat or cool a residential structure, provide
hot water for use in a residential structure, or provide solar
process heat. Batteries for power storage may also be included in
photovoltaic systems.
(e) "Photovoltaic technology" means solar power technology
that uses photovoltaic cells and modules to convert light from the
sun directly into electricity. Photovoltaic technology includes
equipment, component parts, materials, electronic devices, testing
equipment, and other related systems that are specifically designed
or fabricated and used primarily for 1 or more of the following:
(i) The storage, generation, reformation, or distribution of
clean fuels integrated within a photovoltaic system.
(ii) The process of utilizing photovoltaic energy to generate
electricity for use by consumers.