HOUSE BILL No. 4748


     May 6, 1997, Introduced by Rep. Griffin and referred to the Committee on Tax Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 37e.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 37E. (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

 2    1996 AND BEGIN BEFORE JANUARY 1, 2000, A QUALIFIED TAXPAYER MAY

 3    CLAIM A CREDIT EQUAL TO 50% OF THE COST PAID FOR THE USE OF RECY-

 4    CLED MATERIALS AS FEEDSTOCK IN THE MANUFACTURING PROCESS IN

 5    EXCESS OF THE COST THAT WOULD HAVE BEEN INCURRED IF VIRGIN MATE-

 6    RIALS HAD BEEN USED AS FEEDSTOCK.  THE CREDIT ALLOWED UNDER THIS

 7    SECTION IS FOR RECYCLED MATERIALS GENERATED AND PROCESSED IN THIS

 8    STATE BY THE TAXPAYER IN THE TAX YEAR FOR A PURPOSE THAT IS NOT

 9    FOR ENERGY RECOVERY OR INCINERATION AND SHALL NOT EXCEED 50% OF

10    THE COST DIFFERENTIAL FOR THE RECYCLED MATERIALS.




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 1         (2) A TAXPAYER SHALL APPLY TO THE DEPARTMENT OF

 2    ENVIRONMENTAL QUALITY FOR CERTIFICATION OF THE AMOUNT AND

 3    ELIGIBILITY OF RECYCLED MATERIALS PROCESSED.  THE DEPARTMENT OF

 4    ENVIRONMENTAL QUALITY SHALL SUBMIT A COPY OF EACH CERTIFICATION

 5    GRANTED TO THE DEPARTMENT OF TREASURY.  A COPY OF THE CERTIFICA-

 6    TION AND A STATEMENT THAT THE RECYCLED MATERIALS PROCESSED WERE

 7    GENERATED EXCLUSIVELY IN THIS STATE SHALL BE INCLUDED WITH THE

 8    TAX RETURN FOR THE TAX YEAR IN WHICH A TAXPAYER CLAIMS THE CREDIT

 9    UNDER THIS SECTION.

10         (3) THE DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE DEPART-

11    MENT OF TREASURY SHALL PROMULGATE RULES PURSUANT TO THE ADMINIS-

12    TRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO

13    24.328, TO IMPLEMENT THIS SECTION THAT ESTABLISH THE TECHNICAL

14    SPECIFICATIONS AND CERTIFICATION REQUIREMENTS FOR QUALIFICATION

15    OF RECYCLED MATERIALS.

16         (4) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

17    YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED UNDER THIS

18    SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR,

19    THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR

20    SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET TAX

21    LIABILITY IN SUBSEQUENT TAX YEARS FOR 10 YEARS OR UNTIL USED UP,

22    WHICHEVER OCCURS FIRST.

23         (5) BEFORE FEBRUARY 1 OF EACH CALENDAR YEAR, THE DIRECTOR OF

24    THE DEPARTMENT OF ENVIRONMENTAL QUALITY SHALL SUBMIT A REPORT TO

25    THE GOVERNOR, THE STATE TREASURER, AND THE LEGISLATURE THAT

26    INCLUDES THE NUMBER OF CERTIFICATIONS GRANTED DURING THE





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 1    IMMEDIATELY PRECEDING CALENDAR YEAR AND THE AMOUNT OF RECYCLED

 2    MATERIALS PROCESSED BY QUALIFIED TAXPAYERS.

 3         (6) AS USED IN THIS SECTION:

 4         (A) "COST DIFFERENTIAL" MEANS THE STATEWIDE AVERAGE PRICE

 5    DIFFERENTIAL FOR A SPECIFIC RECYCLED MATERIAL AS DETERMINED ANNU-

 6    ALLY BY THE DEPARTMENT OF ENVIRONMENTAL QUALITY.

 7         (B) "QUALIFIED TAXPAYER" MEANS A TAXPAYER THAT HAS APPLIED

 8    TO THE DEPARTMENT OF ENVIRONMENTAL QUALITY AND BEEN GRANTED A

 9    CERTIFICATION OF THE AMOUNT AND ELIGIBILITY OF RECYCLED MATERIALS

10    PROCESSED FOR THE TAX YEAR.

11         (C) "RECYCLED MATERIALS" MEANS ALL OF THE FOLLOWING:

12         (i) GREEN AND AMBER GLASS.

13         (ii) TIRES.

14         (iii) COATED PAPER INCLUDING, BUT NOT LIMITED TO, WAXED

15    CARDBOARD, MILK CARTONS, FAST-FOOD PAPER CONTAINERS, AND OTHER

16    PAPER WITH A SLICK COATING.

17         (iv) BUILDING CONSTRUCTION AND DEMOLITION WASTE INCLUDING,

18    BUT NOT LIMITED TO, WOOD, DRYWALL, MASONRY, AND OTHER ITEMS AND

19    MATERIALS ASSOCIATED WITH THE CONSTRUCTION AND DEMOLITION OF

20    BUILDINGS.

















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