MBT CREDIT FORPLUG-INCAR BATTERIES

House Bill 6611

Sponsor:  Rep. Lee Gonzales

Committee:  Tax Policy

Complete to11-10-08

A SUMMARY OF HOUSEBILL 6611 AS INTRODUCED11-6-08

House Bill 6611 would amend the Michigan Business Tax Act to provide a refundable credit to taxpayers that manufacture plug-in traction battery packs (a type of battery that could power motor vehicles) inMichigan and enter into an agreement with the Michigan Economic Growth Authority (MEGA).  The credit would be available for the 2010 through 2014 tax years, would be $500-$2,000 per vehicle, and would be capped (in total, for all eligible taxpayers), as shown in the chart below.  The credit would be refundable or, at the taxpayer's option, could be carried forward for up to 10 years to offset future tax liability. 

The agreement with the Michigan Economic Growth Authority would have to specify the number of battery packs eligible for the credit and the maximum amount of the credit that could be claimed for each tax year.  The MEGA would provide each eligible taxpayer with a certificate attesting that that taxpayer is eligible for the credit.  The certificate would have to be attached to the taxpayer's annualMBT return. 

MCL 208.1434

FISCAL IMPACT:

The chart above indicates that the maximum amount of credits would total $20.0 million in 2010 and 2011, $37.5 million in 2012, $60.0 million in 2013, and $30.0 million in 2014. 

                                                                                           Legislative Analyst:   Mark Wolf

                                                                                                                       

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.