HOUSE BILL No. 4286

 

February 17, 2011, Introduced by Rep. Rendon and referred to the Committee on Tax Policy.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

(MCL 208.1101 to 208.1601) by adding section 454.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 454. (1) For tax years that begin after December 31,

 

2010, a taxpayer may claim a credit against the tax imposed by this

 

act equal to 50% of the total cost for the construction of a green

 

building or the rehabilitation of a building into a green building

 

and the expenses incurred to obtain LEED certification or

 

$50,000.00, whichever is less. To qualify for the credit under this

 

section, the taxpayer shall apply for and earn LEED certification

 

for the green building for which the taxpayer is claiming the

 

credit. The taxpayer shall attach proof of the LEED certification

 

by the USGBC that the building for which the credit is claimed is


 

LEED certified to the annual return on which a credit under this

 

section is claimed.

 

     (2) If a taxpayer purchases and installs an eligible electric

 

generator that interconnects with the grid and if the taxpayer

 

participates in a net metering program offered by an electric

 

utility, the taxpayer may claim a credit against the tax imposed by

 

this act equal to 20% of the total expenses incurred to purchase

 

and install the eligible electric generator and any other equipment

 

or expenses necessary to interconnect wit the grid during the tax

 

year, including any utility charges incurred to participate in the

 

net metering program.

 

     (3) The department may require reasonable proof from the

 

taxpayer in support of the costs and expenses claimed under this

 

section.

 

     (4) If the amount of the credits 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 not be

 

refunded but may be carried forward for 1 year only.

 

     (5) As used in this section:

 

     (a) "Biomass" means agricultural crops and organic waste,

 

waste to energy, and landfill gas. Biomass fueled systems shall be

 

allowed to blend up to 25% fossil fuel as needed to ensure safe,

 

environmentally sound system operation.

 

     (b) "Electric utility" means a person, partnership,

 

corporation, association, or other legal entity whose transmission

 

or distribution of electricity the commission regulates under 1909

 

PA 106, MCL 460.551 to 460.559, or 1939 PA 3, MCL 460.1 to 460.11.


 

Electric utility also includes a municipal utility.

 

     (c) "Eligible building" means a building located in this state

 

that is any of the following:

 

     (i) A residential multifamily building with at least 4

 

habitable stories that contain at least 10,000 square feet of

 

space.

 

     (ii) One or more residential multifamily buildings with at

 

least 4 habitable stories that are part of a single or phased

 

construction project that contains, in the aggregate, at least

 

20,000 square feet of interior space, provided that, in any single

 

phase of such project, at least 10,000 square feet of interior

 

space is under construction or rehabilitation.

 

     (iii) A building used for commercial or industrial purposes.

 

     (iv) Any combination of buildings described under this

 

subdivision.

 

     (d) "Eligible electric generator" means a system for the

 

generation of electricity that is fueled by a renewable fuel or a

 

fuel cell. An eligible electric generator shall not exceed 150

 

kilowatts unless approved by the Michigan public service commission

 

in consultation with potentially affected electric utilities.

 

     (e) "Green building" means an eligible building that is

 

designed to achieve integrated systems design and construction so

 

as to significantly reduce or eliminate the negative impact of the

 

built environment on the following:

 

     (i) Site conservation and sustainable planning.

 

     (ii) Water conservation and efficiency.

 

     (iii) Energy efficiency and renewable energy.


 

     (iv) Conservation of materials and resources.

 

     (v) Indoor environmental quality and human health.

 

     (f) "LEED certification" means the certification awarded by

 

the USGBC based on the most current leadership in energy and

 

environmental design green building rating system developed and

 

adopted by the USGBC for new buildings and major renovations.

 

     (g) "Renewable fuel" means solar, wind, or biomass.

 

     (h) "USGBC" means the United States green building council

 

that measures and evaluates the energy and environmental

 

performance of a building according to its own leadership in energy

 

and environmental design (LEED) rating system.