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.




     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




     (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




     (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




     (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.