HB-5680, As Passed House, November 10, 2010
SUBSTITUTE FOR
HOUSE BILL NO. 5680
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 253 (MCL 206.253), as added by 2008 PA 287.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 253. (1) Except as otherwise provided under this
subsection, for tax years that begin after December 31, 2008 and
before January 1, 2012, a taxpayer with adjusted gross income equal
to or less than $37,500.00 or for a husband and wife filing a joint
return as provided in section 311 with adjusted gross income equal
to or less than $75,000.00 who purchases and installs a qualified
home improvement for his or her principal residence during the tax
year may claim a credit against the tax imposed by this act equal
to 10% of the amount paid by the taxpayer in the tax year for the
purchase and installation of each qualified home improvement or
$75.00, or for a husband and wife filing a joint return, $150.00,
whichever is less, for each qualified home improvement purchased
and installed during the tax year. However, a taxpayer shall not
claim more than 1 credit under each subparagraph of subsection
(3)(c) during the same tax year. To claim the credit allowed under
this subsection, the taxpayer shall, in the manner required by the
department, provide verification of the amount paid for the
purchase and installation of the qualified home improvement along
with documentation of its compliance with the energy star energy
efficiency guidelines. If the credit allowed under this subsection
exceeds the tax liability of the taxpayer for the tax year, that
portion of the credit that exceeds the tax liability shall be
refunded.
(2) For tax years that begin after December 31, 2008 and
before
December 31 January 1, 2012, a
taxpayer with adjusted gross
income equal to or less than $65,000.00 or for a husband and wife
filing a joint return as provided in section 311 equal to or less
than $130,000.00 may claim a credit against the tax imposed by this
act equal to the percentages provided by this subsection of the
amount authorized for the customer's electric utility or the
customer's municipally owned electric utility under section
45(2)(a) of the clean, renewable, and efficient energy act, 2008 PA
295, MCL 460.1045, and paid during the tax year. If the credit
allowed under this subsection exceeds the tax liability of the
taxpayer for the tax year, that portion of the credit that exceeds
the tax liability shall not be refunded. The percentages of the
amounts authorized shall be as follows:
(a) For tax years that begin after December 31, 2008 and
before January 1, 2010, 25%.
(b) For tax years that begin after December 31, 2009 and
before January 1, 2012, 20%.
(3) As used in this section:
(a) "Electric utility" means that term as defined under
section 10g of 1939 PA 3, MCL 460.10g and includes an alternative
electric supplier as that term is defined under section 10g of 1939
PA 3, MCL 460.10g.
(b) "Principal residence" means that term as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, and exempt from taxation under section 7cc of the general
property tax act, 1893 PA 206, MCL 211.7cc.
(c) "Qualified home improvement" means the following items
intended for residential or noncommercial use that meet or exceed
the applicable energy star energy efficiency guidelines developed
by the United States environmental protection agency and the United
States department of energy:
(i) Insulation.
(ii) Furnaces.
(iii) Water heaters.
(iv) Windows.
(v) Refrigerators, clothes washers, and dishwashers.