HOUSE BILL No. 6407


     September 24, 2002, Introduced by Reps. Kolb and Lipsey 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 206.532) by adding section 270.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC 270.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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        2000, A TAXPAYER THAT OWNS PROPERTY AND LEASES THAT PROPERTY TO

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        ANOTHER PERSON ON WHICH THE LESSEE INSTALLS A PHOTOVOLTAIC SYSTEM

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        OR WIND TURBINE SYSTEM THAT GENERATES ELECTRICITY MAY CLAIM A

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        CREDIT AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO THE LEASE

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        PAYMENT AMOUNT RECEIVED BY THE TAXPAYER FOR THE TAX YEAR.

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             (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION

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        EXCEEDS THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT

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        PORTION OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE

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        REFUNDED TO THE TAXPAYER.




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             (3) AS USED IN THIS SECTION:

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             (A) "PHOTOVOLTAIC CELL" MEANS AN INTEGRATED DEVICE

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        CONSISTING OF LAYERS OF SEMICONDUCTOR MATERIALS AND ELECTRIC CON-

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        TACTS CAPABLE OF CONVERTING INCIDENT LIGHT DIRECTLY INTO

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        ELECTRICITY.

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             (B) "PHOTOVOLTAIC MODULE" MEANS AN ASSEMBLY OF INTERCON-

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        NECTED PHOTOVOLTAIC CELLS.

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             (C) "PHOTOVOLTAIC SYSTEM" MEANS A SOLAR ENERGY DEVICE COM-

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        POSED OF 1 OR MORE PHOTOVOLTAIC CELLS OR PHOTOVOLTAIC MODULES, AN

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        INVERTER OR OTHER POWER CONDITIONING UNIT DESIGNED TO DELIVER

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        POWER OF A SELECTED CURRENT AND VOLTAGE, WIRES, AND OTHER ELEC-

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        TRICAL CONNECTORS.  BATTERIES FOR POWER STORAGE MAY ALSO BE

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        INCLUDED IN A PHOTOVOLTAIC SYSTEM.

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             (D) "WIND TURBINE SYSTEM" MEANS A COMPONENT OF AN ENERGY

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        CONVERSION DEVICE THAT CONVERTS THE ENERGY PRESENT IN THE WIND

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        INTO ELECTRICAL ENERGY.

























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