November 19, 2008, Introduced by Rep. Mayes and referred to the Committee on Energy and Technology.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending sections 432, 432a, and 432b (MCL 208.1432, 208.1432a,
and 208.1432b), section 432 as added by 2008 PA 263, section 432a
as added by 2008 PA 267, and section 432b as added by 2008 PA 265.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 432. (1) A qualified taxpayer that has entered into an
agreement with the Michigan economic growth authority that provides
that the qualified taxpayer will construct and operate a new or
expanded facility described in the agreement under this section for
the manufacture of polycrystalline silicon may claim a credit
against the tax imposed by this act for a period of 12 years
calculated as provided in sections 432a through 432d and claimed
for the tax years as provided in sections 432a through 432d. This
credit shall be taken after all other credits provided under this
act.
(2) The Michigan economic growth authority shall not enter
into more than 1 agreement under this section and shall not enter
into an agreement after December 31, 2008.
(3) A qualified taxpayer shall not claim a credit under
sections 432a through 432d unless the Michigan economic growth
authority has issued a certificate to that taxpayer. The qualified
taxpayer shall attach the certificate to the annual return filed
under this act on which a credit under this section is claimed.
(4) The certificate required under subsection (3) shall state
all of the following:
(a) The taxpayer is a qualified taxpayer.
(b) The amount of the credit under this section for the
qualified taxpayer for the designated tax year.
(c) The taxpayer's federal employer identification number or
the Michigan department of treasury number assigned to the taxpayer
and for a taxpayer that is a unitary business group, the federal
employer identification number or Michigan department of treasury
number assigned to the member of the group engaged in this state in
the manufacture of polycrystalline silicon for solar cells and
semiconductor microchips.
(5) For purposes of this section and sections 432a through
432d:
(a) "Guaranteed cost of electricity" means the following:
(i) For a tax year that begins beginning after December 31,
2011 and ending before January 1, 2019, 4.85 cents per kilowatt
hour.
(ii) For a tax year that begins beginning after December 31,
2018 and ending before January 1, 2021, 5.20 cents per kilowatt
hour.
(iii) For a tax year that begins beginning after December 31,
2020 and ending before January 1, 2024, 6.00 cents per kilowatt
hour.
(b) "Projected cost of electricity" means the following:
(i) For a tax year that begins beginning after December 31,
2011 and ending before January 1, 2013, 6.49 cents per kilowatt
hour.
(ii) For a tax year that begins beginning after December 31,
2012 and ending before January 1, 2014, 6.66 cents per kilowatt
hour.
(iii) For a tax year that begins beginning after December 31,
2013 and ending before January 1, 2015, 6.84 cents per kilowatt
hour.
(iv) For a tax year that begins beginning after December 31,
2014 and ending before January 1, 2016, 7.02 cents per kilowatt
hour.
(v) For a tax year that begins beginning after December 31,
2015 and ending before January 1, 2017, 7.20 cents per kilowatt
hour.
(vi) For a tax year that begins beginning after December 31,
2016 and ending before January 1, 2018, 7.40 cents per kilowatt
hour.
(vii) For a tax year that begins beginning after December 31,
2017 and ending before January 1, 2019, 7.59 cents per kilowatt
hour.
(viii) For a tax year that begins beginning after December 31,
2018 and ending before January 1, 2020, 7.79 cents per kilowatt
hour.
(ix) For a tax year that begins beginning after December 31,
2019 and ending before January 1, 2021, 8.00 cents per kilowatt
hour.
(x) For a tax year that begins beginning after December 31,
2020 and ending before January 1, 2022, 8.21 cents per kilowatt
hour.
(xi) For a tax year that begins beginning after December 31,
2021 and ending before January 1, 2023, 8.43 cents per kilowatt
hour.
(xii) For a tax year that begins beginning after December 31,
2022 and ending before January 1, 2024, 8.65 cents per kilowatt
hour.
(c) "Qualified taxpayer" means a taxpayer whose business
activity conducted in this state includes the manufacturing of
polycrystalline silicon for solar cells and semiconductor
microchips.
Sec.
432a. (1) For tax years that begin beginning after
December 31, 2011 and ending before January 1, 2016, a qualified
taxpayer that has received a certificate under section 432 may
claim a credit equal to the product obtained by multiplying the
qualified consumption of electricity times the difference between
the guaranteed cost of electricity and the actual delivered price
of electricity billed to the qualified taxpayer under a tariff rate
approved by the public service commission or the projected cost of
electricity, whichever is less.
(2) If the credit allowed under this section exceeds the tax
liability of the qualified taxpayer for the tax year, the qualified
taxpayer may elect to have that portion that exceeds the tax
liability of the qualified taxpayer refunded or to have the excess
carried forward to offset the tax liability in subsequent years for
10 years or until used up, whichever occurs first.
(3) As used in this section, "qualified consumption of
electricity" means up to 1,445,400 megawatt hours of electricity
consumed during the tax year at a facility described by an
agreement entered into under section 432.
Sec.
432b. (1) For tax years that begin beginning after
December 31, 2015 and ending before January 1, 2022, a qualified
taxpayer that has received a certificate under section 432 may
claim a credit equal to the product obtained by multiplying the
qualified consumption of electricity times the difference between
the projected cost of electricity and the guaranteed cost of
electricity.
(2) If the credit allowed under this section exceeds the tax
liability of the qualified taxpayer for the tax year, the qualified
taxpayer may elect to have that portion that exceeds the tax
liability of the qualified taxpayer refunded or to have the excess
carried forward to offset the tax liability in subsequent years for
10 years or until used up, whichever occurs first.
(3) As used in this section, "qualified consumption of
electricity" means up to 1,445,400 megawatt hours of electricity
consumed during the tax year at a facility described by an
agreement entered into under section 432.