House Bill 6049

Committee: Tax Policy

Complete to 9-21-98

A SUMMARY OF HOUSE BILL 6049 AS INTRODUCED 9-16-98

The bill would amend the Single Business Tax Act to provide a credit, beginning in 1999, based on the annualized reduction in energy consumption at facilities owned by the taxpayer (i.e., a business) at which the taxpayer conducts business. The credit would equal a certain specified percentage reduction in tax liability based on the amount of reduction in energy consumption. The credit would be determined as follows:

-- For a reduction in energy consumption of at least 10 percent and less than 20 percent, 3 percent of tax liability;

-- For a 20-30 percent reduction, 6 percent of tax liability;

-- For a 30-40 percent reduction, 9 percent of tax liability;

-- For a 40-50 percent reduction, 12 percent of tax liability; and

-- For an energy consumption reduction of 50 percent or more, 15 percent of tax liability.

MCL 208.39c

Analyst: C. Couch

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.