August 19, 2009, Introduced by Reps. Meltzer, Rick Jones, Wayne Schmidt, Calley, Crawford, Bolger, Schuitmaker, DeShazor and Tyler and referred to the Committee on Energy and Technology.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 254.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 254. (1) For the 2010 tax year only, a taxpayer who
purchases and installs a qualified geothermal heat pump may claim a
credit against the tax imposed by this act equal to 30% of the
expenditures incurred by the taxpayer during the tax year for the
purchase and installation of the qualified geothermal heat pump. To
claim the credit allowed under this section, the taxpayer shall, in
a manner required by the department, provide verification of the
expenditures incurred for the purchase and installation of the
qualified geothermal heat pump along with documentation of its
compliance with the energy star program.
(2) For purposes of this section, expenditures for labor costs
that are properly allocable to the on-site preparation, assembly,
or original installation of the qualified geothermal heat pump and
for any piping or wiring to interconnect the equipment to the
principal residence shall be included in the calculation of the
expenditures incurred by the taxpayer for the purchase and
installation of the qualified geothermal heat pump.
(3) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability shall be refunded.
(4) A taxpayer that claims a credit under this section is not
prohibited from claiming a credit under section 253. However, the
taxpayer shall not claim a credit under this section and section
253 based on the same expenditures.
(5) As used in this section:
(a) "Energy star program" means the applicable energy star
energy efficiency guidelines developed by the United States
environmental protection agency and the United States department of
energy.
(b) "Principal residence" means that term as defined under
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 geothermal heat pump" means any equipment which
uses the ground or groundwater as a thermal energy source to heat
the taxpayer's principal residence or as a thermal energy sink to
cool the taxpayer's principal residence and that meets the
requirements of the energy star program which are in effect at the
time that the expenditures for this equipment are made.