May 22, 2008, Introduced by Reps. Bieda, Angerer, Sheltrown, Byrnes, Opsommer, Valentine, Condino, Marleau, Moolenaar, McDowell, Mayes, Lahti, Young, Stahl, Calley, Corriveau, Kathleen Law, Simpson, LeBlanc, Knollenberg, Byrum and Meisner 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 sections 461 and 462.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 461. (1) For tax years that begin on and after January 1,
2008, a taxpayer that constructs or renovates an industrial green
building or commercial green building may claim a credit against
the tax imposed by this act equal to $10,000.00 for each industrial
green building and commercial green building or an amount equal to
the cost of LEED certification as required under this section per
building, whichever is greater, but not more than $22,500.00 per
building.
(2) A taxpayer shall not claim a credit under this section for
an industrial green building or commercial green building unless
that green building has received LEED certification. The taxpayer
shall attach the certificate to the annual return filed under this
act on which the credit under this section is claimed. For an
industrial green building or commercial green building, the
certificate required under this subsection shall state, at a
minimum, that the industrial or commercial building meets or
exceeds the silver level LEED certification standards for human and
environmental health; sustainable site development; water savings;
energy efficiency; materials selection; and indoor environmental
quality within 365 days of completion of the construction or
renovation.
(3) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed by this section
exceed the taxpayer's tax liability for the tax year, that portion
that exceeds the tax liability for the tax year shall not be
refunded but may be carried forward to offset tax liability in
subsequent tax years for 4 years or until used up, whichever occurs
first.
(4) As used in this section:
(a) "Commercial green building" means a green building that is
not a residential green building or industrial green building but
is a place where a business is located and is frequented by the
public.
(b) "Green building" means a resource-efficient,
environmentally sensitive structure that is designed to save money,
reduce waste, water, and energy usage, increase worker
productivity, and create healthier environments for people to live
and work in.
(c) "Industrial green building" means any green building that
is suitable for, and intended for or incidental to, use as a
factory, mill, shop, processing plant, assembly plant, fabricating
plant, warehouse, research and development facility, an
engineering, architectural, or design facility, or a tourist and
resort facility.
(d) "LEED certification" means the certification awarded by
the USGBC based on the most current leadership in energy and
environmental design green building rating system developed and
adopted by the USGBC for new buildings and major renovations.
(e) "Residential green building" means any green building that
is a detached 1- and 2-family dwelling, townhouse, or accessory
structure regulated by the Michigan residential code promulgated
pursuant to the Stille-DeRossett-Hale single state construction
code act, 1972 PA 230, MCL 125.1501 to 125.1531.
(f) "USGBC" means the United States green building council,
which measures and evaluates the energy and environmental
performance of a building according to its own leadership in energy
and environmental design (LEED) rating system.
Sec. 462. (1) For tax years that begin on and after January 1,
2008, a taxpayer that is included in major groups 15, 16, or 17
under the standard industrial classification code as compiled by
the United States department of labor may claim a credit against
the tax imposed by this act equal to the sum of 50% of the
qualified expenses defined in subsection (3)(b)(i) and (ii) and 100%
of the qualified expenses defined in subsection (3)(b)(iii) paid by
the taxpayer during the tax year or $2,000.00 for each employee
that becomes a LEED accredited professional during the tax year,
whichever is less.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer under this act for the tax year, that
portion of the credit that exceeds the tax liability shall be
refunded.
(3) As used in this section:
(a) "LEED certification" means the certification awarded by
the USGBC based on the most current leadership in energy and
environmental design green building rating system developed and
adopted by the USGBC for new buildings and major renovations.
(b) "Qualified expenses" means all of the following expenses
paid by the taxpayer during the tax year for training and LEED
accreditation of its employees:
(i) Salary and wages attributable to those employees seeking
LEED professional accreditation.
(ii) Fringe benefits and other payroll expenses attributable to
those employees seeking LEED professional accreditation.
(iii) Costs of classroom instruction, training, and other
related expenses identified as costs for which the taxpayer is
responsible under an agreement to assist the employee in obtaining
LEED professional accreditation.
(c) "USGBC" means the United States green building council,
which measures and evaluates the energy and environmental
performance of a building according to its own leadership in energy
and environmental design (LEED) rating system.