HOUSE BILL No. 6549


     December 3, 2002, Introduced by Rep. Kooiman 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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        2002, A TAXPAYER MAY CLAIM A CREDIT FOR NOT MORE THAN 20% OF THE

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        AMOUNT PAID IN THE TAX YEAR TO PURCHASE AND INSTALL EQUIPMENT

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        USED EXCLUSIVELY IN OR ON THE TAXPAYER'S PRIMARY RESIDENCE IN

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        THIS STATE TO ALLOW THE REUSE OF OR TO RECYCLE HOUSEHOLD ITEMS OR

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        MATERIALS.

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             (2) TO QUALIFY FOR THE CREDIT ALLOWED UNDER THIS SECTION,

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        THE TAXPAYER SHALL SUBMIT BOTH OF THE FOLLOWING WITH THE ANNUAL

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        RETURN REQUIRED BY THIS ACT ON WHICH THE CREDIT IS CLAIMED:

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             (A) CERTIFICATION FROM THE DEPARTMENT OF ENVIRONMENTAL

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        QUALITY THAT THE EQUIPMENT PURCHASED AND INSTALLED IS NECESSARY


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        TO ALLOW THE REUSE OF OR TO RECYCLE HOUSEHOLD ITEMS OR

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        MATERIALS.

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             (B) PURCHASE RECEIPTS, INVOICES, OR OTHER DOCUMENTATION OF

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        THE COST PAID FOR THE EQUIPMENT AND FOR THE INSTALLATION OF THE

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        EQUIPMENT.

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             (3) IF THE AMOUNT OF THE CREDIT EXCEEDS THE TAX LIABILITY OF

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        THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE CREDIT THAT

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        EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.

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             (4) AS USED IN THIS SECTION, "PRIMARY RESIDENCE" MEANS THE

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        RESIDENCE FOR WHICH THE TAXPAYER CLAIMS A HOMESTEAD EXEMPTION

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        UNDER SECTION 7CC OF THE GENERAL PROPERTY TAX ACT, 1893 PA 206,

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        MCL 211.7CC.
































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