March 11, 2008, Introduced by Rep. Sheltrown and referred to the Committee on Agriculture.
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) Subject to the limitations provided under this
section, a taxpayer that is an owner of a service station may claim
a credit against the tax imposed by this act equal to 30% of the
cost to convert existing fuel delivery systems to provide E85 fuel
or biodiesel blend and to create new fuel delivery systems designed
to provide E85 fuel and biodiesel blends.
(2) In determining the amount of the credit under subsection
(1), a taxpayer shall not include any costs to convert existing
fuel delivery systems to provide E85 fuel or biodiesel blend or to
create new fuel delivery systems designed to provide E85 fuel and
biodiesel blends for which the taxpayer received a grant under the
service station matching grant program created under section 78 of
the Michigan strategic fund act, 1984 PA 270, MCL 125.2078.
(3) If the credit allowed under this section exceeds the
liability of the taxpayer for the tax year, the taxpayer may elect
to have that portion that exceeds the tax liability of the taxpayer
refunded or to have the excess carried forward to offset tax
liability in subsequent years for 10 years or until it is used up,
whichever occurs first.
(4) A taxpayer shall not claim a credit under this section
unless the Michigan strategic fund has issued a certificate to the
taxpayer. The taxpayer shall attach the certificate to the annual
return filed under this act on which the credit under this section
is claimed. The certificate required by this subsection shall state
all of the following:
(a) The taxpayer is the owner of a service station and has
converted existing fuel delivery systems to provide E85 fuel or
biodiesel blend or created new fuel delivery systems designed to
provide E85 fuel and biodiesel blends, or both, during the tax year
for which this credit is sought.
(b) The amount of the costs incurred by the taxpayer during
the designated tax year to convert existing fuel delivery systems
to provide E85 fuel or biodiesel blend and to create new fuel
delivery systems designed to provide E85 fuel and biodiesel blends
and the amount of any grant awarded during the designated tax year
to the taxpayer based on the same costs.
(c) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the
taxpayer.
(5) A taxpayer that claims a credit under this section and
subsequently stops using the fuel delivery systems to provide E85
fuel or biodiesel blend within 3 years of receiving this credit
may, as determined by the Michigan strategic fund, have its credit
reduced or terminated or have a percentage of the credit amount
previously claimed under this section added back to the tax
liability of the taxpayer in the year that the taxpayer stops using
the fuel delivery systems to provide E85 fuel or biodiesel blend.
(6) As used in this section:
(a) "Biodiesel" means a fuel composed of monoalkyl esters of
long chain fatty acids derived from vegetable oils or animal fats,
and, in accordance with standards specified by the American society
for testing and materials, designated B100, and meeting the
requirements of D-6751, as approved by the department of
agriculture.
(b) "Biodiesel blend" means a fuel composed of a blend of
biodiesel fuel with petroleum-based diesel fuel, suitable for use
as a fuel in a compression-ignition internal combustion diesel
engine.
(c) "E85 fuel" means a fuel blend containing between 70% and
85% denatured fuel ethanol and gasoline suitable for use in a
spark-ignition engine and that meets American society for testing
and materials D-5798 specifications.
(d) "Michigan strategic fund" means the Michigan strategic
fund as described in the Michigan strategic fund act, 1984 PA 270,
MCL 125.2001 to 125.2094.