May 4, 2010, Introduced by Reps. Bolger, Amash, McMillin, Agema, DeShazor, Haveman, Paul Scott, Green, Meekhof, Meltzer, Daley, Crawford, Genetski, Lund, Rogers, Kowall and Booher and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending sections 434 and 460 (MCL 208.1434 and 208.1460),
section 434 as amended by 2009 PA 240 and section 460 as added by
2008 PA 335.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
434. (1) The Unless an
earlier deadline is provided under
this section, the Michigan economic growth authority is authorized
to enter into agreements through December 31, 2010 to provide tax
credits available under this section to stimulate the domestic
commercialization and affordability of high-power energy batteries,
the lack of which today is limiting hybrid, plug-in hybrid battery-
electric, and fuel cell vehicle applications, and to help insure
that job growth from battery technology and commercial production
develops alongside advanced vehicle technology development and
renewable power generation initiatives both within and outside the
transportation sector.
(2) Subject to the limitations provided under this section,
for tax years that begin on or after January 1, 2010 and end before
January 1, 2015, a taxpayer that has entered into an agreement with
the Michigan economic growth authority before January 1, 2011 that
provides that the taxpayer will manufacture plug-in traction
battery packs in this state may claim a credit against the tax
imposed by this act for the manufacture of those plug-in traction
battery packs as provided in this section. The Michigan economic
growth authority may enter into more than 1 agreement under this
section. However, the total number of plug-in traction battery
packs eligible for all credits under all agreements allowed under
this section shall not exceed the number of plug-in traction
battery packs eligible for a credit as provided in this section and
at least 1 agreement shall make capital investments of not less
than $200,000,000.00 not later than December 31, 2012. A taxpayer
shall not claim a credit under this section for more than 3 years.
The total of all credits allowed under this section shall be as
follows:
(a) For tax years beginning after December 31, 2010 and ending
before January 1, 2012, $500.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $125.00 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours of battery capacity
not to exceed $2,000.00 for each plug-in traction battery pack. The
total number of traction battery packs shall not exceed 20,000
plug-in traction battery pack units under this subdivision, and the
total amount of credits allowed under this subdivision shall not
exceed $40,000,000.00.
(b) For tax years beginning after December 31, 2011 and ending
before January 1, 2013, $375.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $93.75 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours of battery capacity
not to exceed $1,500.00 for each plug-in traction battery pack. The
total number of traction battery packs shall not exceed 40,000
plug-in traction battery pack units under this subdivision, and the
total amount of credits allowed under this subdivision shall not
exceed $43,000,000.00. A single taxpayer shall not claim a credit
for more than 25,000 plug-in traction battery pack units under this
subdivision. The number of battery pack units not used for credits
under subdivision (a) may be added to the total number of battery
pack units for which a credit is available under this subdivision,
and the credits for those units shall be calculated as described in
subdivision (a) and shall be in addition to the maximums allowed
for any 1 taxpayer under this subdivision or the total limits
allowed under this subdivision.
(c) For tax years beginning after December 31, 2012 and ending
before January 1, 2014, $375.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $93.75 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours not to exceed
$1,500.00 for each plug-in traction battery pack. The total number
of traction battery packs shall not exceed 40,000 plug-in traction
battery pack units under this subdivision, and the total amount of
credits allowed under this subdivision shall not exceed
$43,000,000.00. A single taxpayer shall not claim a credit for more
than 25,000 plug-in traction battery pack units under this
subdivision.
(d) For tax years beginning after December 31, 2013 and ending
before January 1, 2015, $375.00 for an equivalent of 4 kilowatt
hours of battery capacity plus $93.75 for each kilowatt hour of
battery capacity in excess of 4 kilowatt hours not to exceed
$1,500.00 for each plug-in traction battery pack. The total number
of traction battery packs shall not exceed 25,000 plug-in traction
battery pack units under this subdivision, and the total amount of
credits allowed under this subdivision shall not exceed
$9,000,000.00.
(3)
For Based on agreements
entered into before January 1,
2011, for tax years that begin on or after January 1, 2012 and
subject to the limitations of this subsection, a taxpayer may claim
a credit of up to 75% of the qualified expenses for vehicle
engineering in this state to support battery integration,
prototyping, and launch expenses incurred for tax years that begin
on or after January 1, 2009 and end before January 1, 2014. This
credit shall not exceed $15,000,000.00 per year as agreed to and
certified by the Michigan economic growth authority. Any expenses
for which a credit is claimed under this subsection shall not be
included in costs and expenses used for credits available under
sections 403 and 405. The Michigan economic growth authority may
not authorize more than $135,000,000.00 in total credits to all
taxpayers under this subsection. To claim the credit under this
subsection, a taxpayer must manufacture a cumulative total of at
least 1,000 motor vehicles that would qualify for the credit under
section 30D of the internal revenue code and the credit shall be
available to the taxpayer only for the following percentages of the
total authorized annual expenses:
(a) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 1,000 motor vehicles and fewer than
2,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 20%.
(b) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 2,000 motor vehicles but fewer than
3,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 40%.
(c) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 3,000 motor vehicles but fewer than
4,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 60%.
(d) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 4,000 motor vehicles but fewer than
5,000 motor vehicles that qualify for the credit under section 30D
of the internal revenue code, 80%.
(e) In a tax year in which the taxpayer has manufactured a
cumulative total of at least 5,000 motor vehicles that qualify for
the credit under section 30D of the internal revenue code, 100%.
(4) For tax years that begin on or after January 1, 2012 and
end before January 1, 2015, a taxpayer that has entered into an
agreement with the Michigan economic growth authority before
January 1, 2011 that provides that the taxpayer will increase its
engineering activities in this state for advanced automotive
battery technologies may claim a credit under this subsection. A
taxpayer's qualified advanced battery engineering expenses for
advanced automotive battery technologies shall exceed those
expenses for the taxpayer's 2008 fiscal year to qualify for the
credit under this subsection. The Michigan economic growth
authority may enter into not more than 1 agreement for advanced
battery engineering credits, and the total value of credits
available under this subsection is limited to $30,000,000.00. The
credits under this subsection shall be allowed as follows:
(a) Up to 75% of the total dollar amount of the qualified
advanced battery engineering expenses of an authorized business
incurred during tax years beginning on or after January 1, 2009 and
ending before January 1, 2014. The taxpayer must submit to the
Michigan economic growth authority an affidavit certifying the
amount of qualified advanced battery engineering expenses for each
year.
(b) Notwithstanding any other provision of this section, a
taxpayer may claim no more than $10,000,000.00 in credits under
this subsection in any tax year.
(c) The credits available under this subsection shall not be
allowed if the taxpayer claims credits under subsection (2) for
battery pack assembly for the tax year. Notwithstanding this
limitation, the credits available under this subsection are in
addition to any other incentives which may be authorized under the
Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to
207.810, for other related or unrelated projects including the
vehicle research and development expenses authorized under
subsection (3). Any expenses for which a credit is claimed under
this subsection shall not be included in costs and expenses used
for credits available under sections 403 and 405.
(5) A taxpayer that has entered into an agreement with the
Michigan economic growth authority before January 1, 2011 may claim
a credit equal to 50% of the capital investment expenses for any
tax year for the construction of an integrative cell manufacturing
facility that includes anode and cathode manufacturing and cell
assembly if the taxpayer will create not less than 300 new jobs in
this state. Not more than 5 agreements may be entered into under
this section, and the maximum allowable credit under each agreement
shall not exceed $25,000,000.00 per year for no more than 4 years.
No credit shall be claimed in a tax year beginning before 2012.
However, tax credits may be based on expenses incurred in this
state in prior years. The Michigan economic growth authority shall
not adopt a resolution authorizing an agreement to provide credits
under this subsection after March 31, 2010.
(6) A taxpayer that has entered into an agreement with the
Michigan economic growth authority before January 1, 2011 may claim
a credit equal to 25% of the capital investment expenses for any
tax year for the construction of a facility that will produce large
scale batteries and manufacture integrated power management, smart
control, and storage systems from 500 kilowatts to 100 megawatts if
the taxpayer will create not fewer than 500 new jobs in this state
and the taxpayer has received federal loan guarantees for a project
that employs innovative energy efficiency, renewable energy, and
advanced transmission and distribution technologies from the United
States department of energy under section 1703 of title XVII of the
energy policy act of 2005, 42 USC 16513. Not more than 1 agreement
may be entered into under this subsection, and the maximum
allowable credit under the agreement shall not exceed
$25,000,000.00 per year for no more than 4 years. No credit shall
be claimed in a tax year beginning before 2012. The Michigan
economic growth authority shall not adopt a resolution authorizing
an agreement to provide a credit under this subsection after March
1, 2010.
(7) Subject to the limitations under subsection (8), for tax
years that begin on or after January 1, 2012 and end before January
1, 2017, a taxpayer that has entered into an agreement with the
Michigan economic growth authority before January 1, 2011 that
provides that the taxpayer will manufacture advanced lithium ion
battery packs in this state may claim a credit against the tax
imposed by this act for the manufacture of those advanced lithium
ion battery packs as follows:
(a) For a taxpayer that agrees to make capital investments in
this state of not less than $250,000,000.00, to create at least
1,000 new jobs that shall include jobs that are transferred to this
state from a foreign country, and to manufacture not less than
225,000 advanced lithium ion battery packs in this state, a total
credit of not more than $26,000,000.00 per tax year for no more
than 3 tax years. The Michigan economic growth authority shall not
adopt a resolution authorizing an agreement under this subdivision
after March 1, 2010.
(b) For a taxpayer that agrees to make capital investments in
this state of not less than $200,000,000.00 and to create at least
300 new jobs, a total credit of not more than $42,000,000.00 over 4
consecutive tax years unless otherwise provided under subsection
(10). Unless the Michigan economic growth authority determines that
there are previously issued credits authorized under subsection (6)
available or that there are credits available under subsection
(7)(a) for additional credits under this subdivision, the Michigan
economic growth authority shall not adopt a resolution authorizing
an agreement under this subdivision after March 1, 2010.
(8) Any capital investments made, jobs created, or expenses
incurred pursuant to an agreement entered for a credit under
subsection (7) or (9) shall be in addition to any other capital
investments, jobs, or expenses used for any other credit available
under this section and shall not be included or used for a credit
available under any subsection other than subsection (7) or (9),
respectively. A taxpayer that claims a credit under subsection
(7)(a) shall not claim an additional credit under subsection
(7)(b). For purposes of subsection (7), "new job" means a full-time
job created by a taxpayer related to its advanced lithium ion
battery activities, including its battery pack assembly facility, a
cell manufacturing facility, and a motor vehicle assembly facility
at which the battery pack is installed in a motor vehicle, or
related battery engineering, that is in excess of the number of
active full-time jobs the taxpayer maintained in this state prior
to
the effective date of the amendatory act that added this
subsection
January 8, 2010 as
determined by the Michigan economic
growth authority.
(9) Subject to the limitations of this subsection, before
January 1, 2011, if the Michigan economic growth authority
determines that there are previously issued credits authorized
under subsection (6) available, then for tax years that begin on or
after January 1, 2015 and end before January 1, 2017 a taxpayer may
claim a credit of up to 75% of the costs incurred during each tax
year that begins on or after January 1, 2013 and ends before
January 1, 2016 to implement a sourcing program to utilize battery
cells from a business that has entered into an agreement under
subsection (5) for the construction of an integrative cell
manufacturing facility. Costs eligible for the credit under this
subsection shall include payments for battery pack and vehicle
engineering and associated design or integration including
prototyping, facility, equipment or component retooling, and
vehicle regulatory certification and shall include costs such as
direct labor, purchases of capital equipment at cost, expensed
supplies, intellectual property licensing, services, and financing,
as determined and certified by the Michigan economic growth
authority. Any costs for which a credit is claimed under this
subsection shall not be included in costs and expenses used for
credits available under sections 403 and 405. The Michigan economic
growth authority may enter into more than 1 agreement under this
subsection. The Michigan economic growth authority shall not enter
into an agreement under this subsection after December 31, 2010.
The Michigan economic growth authority shall not authorize more
than an amount equal to 25% of the previously issued credits
available under subsection (6) as determined under subsection (10)
in total credits to all taxpayers under this subsection. A single
taxpayer shall not claim a credit of more than $12,500,000.00 per
year for no more than 2 years. To claim the credit under this
subsection, a taxpayer must manufacture at least 10,000 motor
vehicles in each year a credit is claimed at a facility in this
state at which some of the costs eligible for a credit under this
subsection are or were incurred. An agreement entered into under
this subsection shall contain a repayment provision that if the
taxpayer relocates its battery pack assembly facility for which
credits are taken under subsection (7) outside of this state during
the term of the agreement or subsequently substantially fails to
meet the requirements of the agreement, as determined by the
Michigan economic growth authority, the taxpayer shall have its
credit reduced or terminated or have a percentage of the amount
previously claimed under this subsection added back to the tax
liability of the taxpayer in the year that the taxpayer fails to
comply with the agreement.
(10)
If Before January 1, 2011, if the Michigan
economic
growth authority determines that there are previously issued
credits authorized under subsection (6) available, an amount equal
to 25% of those previously issued credits may be used by the
authority to enter into agreements for which a credit may be
claimed under subsection (9) and an amount equal to 25% of those
previously issued credits may be used by the authority to enter
into additional agreements for which a credit may be claimed under
subsection (7)(b). If the Michigan economic growth authority
approves a total of less than $78,000,000.00 in credits under
subsection (7)(a), the Michigan economic growth authority may use
the difference between $78,000,000.00 and the total amount of
credits approved under subsection (7)(a) to approve additional
credits under subsection (7)(b). As used in this subsection and
subsections (7) and (9), "previously issued credits" means the
total amount of credits authorized by the authority for a taxpayer
under subsection (6) that meets all of the following:
(a) The taxpayer did not use any or a portion of the credits
authorized under the written agreement under subsection (6).
(b) The authority determined at a meeting upon a vote of the
majority of the members present that the credits previously
authorized satisfy subdivision (a).
(11) The Michigan economic growth authority shall appoint a
review board to advise it about decisions concerning credits under
subsection (5). The review board shall be composed of not fewer
than 2 independent scientists. Additional experts may be sought on
an ad hoc basis to review business plans and addressable markets.
In making its recommendations, the review board shall give
preference to technologies presenting novel materials,
manufacturing, and performance qualities. The review board shall
also consider all of the following:
(a) Business activities related to advanced battery technology
occurring exclusively in Michigan.
(b) Activities directly related to whole cell production, from
materials to large format cells, in Michigan.
(c) Scalability of manufacturing processes that are
established, are robust, and address strategic global automotive
market requirements.
(12) Credits under this section shall be taken after
nonrefundable credits available under this act. If a credit or the
sum of credits allowed under this section exceeds the tax 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 tax years for 10 years or until used up,
whichever occurs first. Amounts carried forward shall not affect
the maximum amount of credits that may be claimed in subsequent
years.
(13) An agreement entered into for tax credits under this
section shall specify all of the following:
(a) For credits provided under subsection (2), the number of
plug-in traction battery packs eligible for a credit for each tax
year covered by the period of the agreement and the maximum amount
of the credit that may be claimed by the taxpayer in each tax year.
(b) If the taxpayer claims a credit under subsection (3), the
qualified expenses for vehicle engineering, prototype, and launch
costs and the annual and total dollar amount of the credits that
may be claimed under subsection (3).
(c) If the taxpayer claims a credit under subsection (4), the
total dollar amount of the credits that may be claimed under
subsection (4).
(d) If a taxpayer claims a credit under subsection (5), all of
the following:
(i) The location of the facility.
(ii) The estimated total cost of the facility.
(iii) The capital investment expenses that qualify for the
credit under subsection (5).
(iv) The annual and total dollar amount of the credits that may
be claimed under subsection (5).
(v) A repayment provision that if the taxpayer subsequently
substantially fails to meet certain requirements of the agreement,
as determined by the Michigan economic growth authority, the
taxpayer may have its credit reduced or terminated or have a
percentage of the amount previously claimed under subsection (5)
added back to the tax liability of the taxpayer in the year that
the taxpayer fails to comply with the agreement.
(e) If a taxpayer claims a credit under subsection (6), all of
the following:
(i) The location of the facility.
(ii) The estimated total cost of the facility.
(iii) The capital investment expenses that qualify for the
credit under subsection (6).
(iv) The annual and total dollar amount of the credits that may
be claimed under subsection (6).
(v) The minimum number of new jobs to be created in this state
each year to qualify for the credit under subsection (6).
(vi) A repayment provision that if the taxpayer subsequently
substantially fails to meet certain requirements of the agreement,
as determined by the Michigan economic growth authority, the
taxpayer may have its credit reduced or terminated or have a
percentage of the amount previously claimed under subsection (6)
added back to the tax liability of the taxpayer in the year that
the taxpayer fails to comply with the agreement.
(f) If a taxpayer claims a credit under subsection (7), all of
the following:
(i) A provision that the taxpayer agrees to make a good faith
effort to utilize Michigan suppliers and vendors when purchasing
components and services related to the production of advanced
lithium ion battery packs for which a credit is claimed in the
2012, 2013, and 2014 tax years. For a credit during the 2015 and
2016 tax years, a provision that the taxpayer shall utilize cells
from a business that has entered into an agreement under subsection
(5) for the construction of an integrative cell manufacturing
facility.
(ii) A repayment provision that if the taxpayer relocates its
advanced lithium ion battery pack assembly facility that produces
the battery pack units for which the credit is claimed under
subsection (7) outside of this state during the term of the
agreement or subsequently fails to meet the capital investment or
new jobs requirements of the agreement entered into for a credit
under subsection (7), as determined by the Michigan economic growth
authority, the taxpayer shall have a percentage of the amount
previously claimed under subsection (7) added back to the tax
liability of the taxpayer in the year that the taxpayer fails to
comply with the agreement entered into for a credit under
subsection (7) and shall have its credit terminated or reduced
prospectively.
(iii) The minimum number of advanced lithium ion battery packs
to be manufactured to be eligible for a credit for each tax year
covered by the period of the agreement and the maximum amount of
the credit that may be claimed by the taxpayer in each tax year.
(iv) The capital investment that qualifies for the credit under
subsection (7).
(v) The minimum number of new jobs to be created in this state
to qualify for the credit under subsection (7).
(14) A taxpayer shall not claim a credit under this section
unless the Michigan economic growth authority has issued a
certificate to the taxpayer. The taxpayer shall attach the
certificate to the annual return filed under this act on which a
credit under this section is claimed. The certificate required
under this subsection shall state all of the following:
(a) The taxpayer is located in this state and engaged in
activity that qualifies for the credit under this section.
(b) 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
activity that qualifies for a credit under this section.
(c) If applicable, the number of plug-in traction battery pack
units or advanced lithium ion battery pack units manufactured by
the taxpayer during the designated tax year and the amount of the
credit under this section for which the taxpayer is allowed to
claim for the designated tax year.
(d) For credits available under subsections (3), (4), (5),
(6), (7), and (9), the amount of the credit available for the tax
year and such other information as may be required by the
department.
(15) As used in this section:
(a) "Advanced automotive battery technology" means a
rechargeable lithium battery that supports vehicle propulsion or
other advanced technologies as may be further defined by the
Michigan economic growth authority.
(b) "Advanced lithium ion battery pack" means an assembled
unit of battery cells containing rechargeable lithium ion chemistry
designed and mass-produced for the purpose of transportation,
including defense and commercial applications.
(c) "Battery cell" means the basic electrochemical unit that
provides a source of electrical energy by direct conversion of
chemical energy and consists of an assembly of electrodes,
separators, electrolyte, container, and terminals.
(d) "Capital investment" means expenses incurred during the
tax year and included in an agreement under this section that are
associated with facilities, equipment, tooling and engineering, and
manufacturing, including salaries, contract services, taxes,
utilities, raw materials, and supplies.
(e) "Michigan economic growth authority" means the Michigan
economic growth authority created in the Michigan economic growth
authority act, 1995 PA 24, MCL 207.801 to 207.810.
(f) "Plug-in traction battery pack" means an electrochemical
energy storage device that meets the following requirements:
(i) Has a traction battery capacity of not less than 4.0
kilowatt hours.
(ii) Is equipped with an electrical plug by means of which it
can be energized and recharged when plugged into an external source
of power.
(iii) Consists of standardized configuration and is mass-
produced.
(iv) Has been tested and approved by the national highway
transportation safety administration as compliant with applicable
motor vehicle and motor vehicle equipment safety standards when
installed by a mechanic with standardized training in protocols
established by the manufacturer as part of a nationwide
distribution program.
(v) Is installed in a new qualified plug-in electric drive
motor vehicle that qualifies for the credit under section 30D of
the internal revenue code.
(g) "Qualified advanced battery engineering expenses" means
that part of a taxpayer's qualified research expenses as defined
under section 41(b) of the internal revenue code related to
engineering research and development related to advanced automotive
battery technology.
(h) "Qualified expenses for vehicle engineering" means that
part of a taxpayer's expenses for activities within this state
related to integrating batteries into a motor vehicle that would
qualify for the credit under section 30D of the internal revenue
code including such qualified research expenses as defined under
section 41(b) of the internal revenue code.
(i) "Traction battery capacity" is the number of kilowatt
hours measured from a 100% state of charge to a 0% state of charge.
Sec. 460. (1) For tax years that begin after December 31, 2008
and
end before January 1, 2012, 2011,
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) 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.
(3) The total amount of all credits allowed under this section
shall not exceed $1,000,000.00 per calendar year. 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.
(4) A taxpayer shall not claim a credit under this section
unless the energy office 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
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 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 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.
(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.
(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.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) House Bill No. 5249.
(b) Senate Bill No.____ or House Bill No. 6104(request no.
04275'09).
(c) Senate Bill No.____ or House Bill No. 6103(request no.
05669'09).
(d) Senate Bill No.____ or House Bill No. 6105(request no.
05670'09).
(e) Senate Bill No.____ or House Bill No. 6106(request no.
05671'09).
(f) Senate Bill No.____ or House Bill No. 6107(request no.
05672'09).
(g) Senate Bill No.____ or House Bill No. 6112(request no.
05673'09).
(h) Senate Bill No.____ or House Bill No. 6113(request no.
05675'09*).
(i) Senate Bill No.____ or House Bill No. 6109(request no.
05676'09).
(j) Senate Bill No.____ or House Bill No. 6110(request no.
05677'09).
(k) Senate Bill No.____ or House Bill No. 6116(request no.
05678'09).
(l) Senate Bill No.____ or House Bill No. 6114(request no.
05679'09).
(m) Senate Bill No.____ or House Bill No. 6117(request no.
05680'09).
(n) Senate Bill No.____ or House Bill No. 6108(request no.
05681'09).
(o) Senate Bill No.____ or House Bill No. 6119(request no.
05930'10).
(p) Senate Bill No.____ or House Bill No. 6111(request no.
05931'10).
(q) Senate Bill No.____ or House Bill No. 6118(request no.
05933'10).