HOUSE BILL No. 6476


     November 7, 2002, Introduced by Rep. Kolb 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:

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

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        2002, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

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        THIS ACT EQUAL TO THE COST PAID IN THE TAX YEAR FOR ECOLOGICALLY

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        FRIENDLY ACTIVITIES NOT TO EXCEED 10% OF THE TAXPAYER'S TAX

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        LIABILITY FOR THE TAX YEAR.

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             (2) THE DEPARTMENT, IN CONJUNCTION WITH THE DEPARTMENT OF

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        ENVIRONMENTAL QUALITY, SHALL DEVELOP STANDARDS TO DETERMINE ELI-

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        GIBILITY FOR THE CREDIT ALLOWED UNDER THIS SECTION.

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             (3) A TAXPAYER THAT CLAIMS A CREDIT UNDER THIS SECTION SHALL

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        INCLUDE RECEIPTS OR OTHER ACCEPTABLE DOCUMENTATION, AS DETERMINED




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        BY THE DEPARTMENT, OF EXPENSES ON WHICH THE CREDIT IS BASED WITH

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        THE ANNUAL RETURN REQUIRED BY THIS ACT.

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

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        YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED UNDER THIS

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        SECTION EXCEED THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX

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        YEAR, THE EXCESS SHALL NOT BE REFUNDED, BUT MAY BE CARRIED FOR-

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        WARD AS AN OFFSET TO THE TAX LIABILITY IN SUBSEQUENT TAX YEARS

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        FOR 10 TAX YEARS OR UNTIL THE EXCESS CREDIT IS USED UP, WHICHEVER

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        OCCURS FIRST.

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             (5) AS USED IN THIS SECTION, "ECOLOGICALLY FRIENDLY

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        ACTIVITIES" MEANS ALL OF THE FOLLOWING:

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             (A) DEVELOPMENT AND UTILIZATION OF SOURCES OF RENEWABLE

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        ENERGY AS PART OF THE TAXPAYER'S BUSINESS ACTIVITY.

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             (B) STRATEGIES OR PURCHASES THAT INCREASE THE ENERGY EFFI-

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        CIENCY OF THE TAXPAYER'S FACILITY OR BUSINESS PROCESSES BY MORE

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        THAN 30% WHEN MEASURED AGAINST THE TAXPAYER'S ENERGY CONSUMPTION

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        PRIOR TO THE INTRODUCTION OF THE STRATEGIES OR PURCHASES.

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             (C) INTRODUCTION OF POLLUTION PREVENTION MEASURES TO THE

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        TAXPAYER'S FACILITY OR BUSINESS PROCESSES.

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             (D) MITIGATION OF STORMWATER RUNOFF AND RESULTANT POLLUTION

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        THROUGH NATURAL SYSTEMS CHANGES ON THE TAXPAYER'S BUSINESS SITE

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        OR FACILITY.

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             (E) OTHER INVESTMENT IN SUSTAINABLE DEVELOPMENT TO INCREASE

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        ENERGY EFFICIENCY AND REDUCE POLLUTION AND INTRODUCTION OF TOXIC

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        SUBSTANCES INTO THE ENVIRONMENT.







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