HB-6435, As Passed House, November 9, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 6435

A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

by amending section 460 (MCL 208.1460), as added by 2008 PA 335.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 460. (1) For tax years that begin after December 31, 2008

and end before January 1, 2012, 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 incurred during the tax year to convert

existing fuel delivery systems to provide E85 fuel or qualified

biodiesel blends and to create new fuel delivery systems designed

to provide E85 fuel or qualified biodiesel blends. ~~, not to exceed~~

~~$20,000.00 per tax year per taxpayer.~~

(2) For the taxpayer's first tax year that begins after

December 31, 2010 only, subject to the limitations provided under

this section, a taxpayer may claim a credit against the tax imposed

by this act equal to 30% of the cost incurred during that tax year

to purchase and install 1 or more new charging stations in this

state that are available to the public for the purpose of charging

plug-in electric motor vehicles. For purposes of this section, a

charging station is available to the public if the charging station

is physically accessible for the intent and purpose of charging an

electric motor vehicle and the accessibility is not limited to

users by subscription, membership, or any other similar

restriction.

(3) ~~(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 qualified

biodiesel blends or to create new fuel delivery systems designed to

provide E85 fuel or qualified 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.

(4) ~~(3)~~ A credit allowed under this section shall not exceed

$20,000.00 per tax year per taxpayer. The total amount of all

credits allowed under this section shall not exceed $1,000,000.00

per calendar year. The total amount of all credits allowed under

subsection (2) shall not exceed $800,000.00. If the credit allowed

under this section exceeds the liability of the taxpayer for the

tax year, that portion of the credit that exceeds the tax liability

shall not be refunded.

(5) ~~(4)~~ A taxpayer shall not claim a credit under ~~this section~~

subsection (1) unless the ~~energy office~~ bureau of energy systems

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~~ subsection (1) 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

qualified biodiesel blends or created new fuel delivery systems

designed to provide E85 fuel or qualified 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 qualified biodiesel blends and to create new

fuel delivery systems designed to provide E85 fuel or qualified

biodiesel blends and the amount of any grant awarded under section

78 of the Michigan strategic fund act, 1984 PA 271, MCL 125.2078,

during the designated tax year to the taxpayer based on the same

costs.

the Michigan department of treasury number assigned to the

taxpayer.

(6) ~~(5)~~ A taxpayer that claims a credit under ~~this section~~

subsection (1) and subsequently stops using the fuel delivery

systems to provide E85 fuel or qualified biodiesel blends or 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 qualified biodiesel blends.

(7) A taxpayer shall not claim a credit under subsection (2)

unless the bureau of energy systems has issued a certificate to the

taxpayer. The bureau of energy systems shall review and issue the

certificate upon verification of the costs incurred by the

taxpayer, the availability of the charging station to the public,

and the likelihood of public use of those charging stations. The

taxpayer shall attach the certificate to the annual tax 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 has installed 1 or more charging stations on

its property that are available to the public during the tax year

for which this credit is sought.

(b) The amount of the costs incurred by the taxpayer during

the tax year to purchase and install the charging stations.

the taxpayer for the tax year.

(d) The taxpayer's federal employer identification number or

the Michigan department of treasury number assigned to the

taxpayer.

(8) A taxpayer that claims a credit under subsection (2) and

subsequently stops using 1 or more of the charging stations to

provide electricity to the public for the purpose of charging plug-

in electric motor vehicles within 3 years of receiving this credit

may, as determined by the bureau of energy systems, 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 charging station to provide electricity to the public for the

purpose of charging plug-in electric motor vehicles.

(9) ~~(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.

complete with electric vehicle supply equipment that is capable of

providing level 2 charging for plug-in electric motor vehicles.

(d) ~~(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.

(e) "Electric vehicle supply equipment" means the conductors,

including the ungrounded, grounded, and equipment grounding

conductors, and the electric vehicle connectors, attachment plugs,

and all other fittings, devices, power outlets, or apparatuses that

meet or exceed any standards, codes, and regulations set forth in R

408.30801 to R 408.30876 of the Michigan administrative code and

the standards set forth in SAE J1772 that are installed

specifically for the purpose of delivering energy from the premises

wiring to a plug-in electric motor vehicle.

(f) "Level 2 charging" means providing 208-240 volt alternate

current energy to an onboard charger of an electric motor vehicle

in a single phase with a maximum current specified under SAE J1772.

(g) ~~(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.

(h) "Motor vehicle" means that term as defined under section

30D of the internal revenue code, 26 USC 30D.

(i) "Plug-in electric motor vehicle" means a motor vehicle

which is propelled to a significant extent by an electric motor

which draws electricity from a battery that is capable of being

recharged from an external source of electricity.

(j) ~~(e)~~ "Qualified biodiesel blends" means any biodiesel blend

that is blended on site utilizing on-demand bio-blending equipment

that is installed after the effective date of the amendatory act

that added this section.

(k) "SAE J1772" means the North American standard for

electrical connectors for electric vehicles maintained by the

society of automotive engineers and has the formal title SAE